Yesterday and the Bank of England and the ECB kept its refinancing rate at the same level. In addition, the diversity of the Bank of England decided on this occasion frustrate their activity in terms of increasing the money supply and upheld the purpose of acquiring assets at 175 billion pounds. Monetary Policy Committee said that before starting to revise their policies, they need to look at the results of the November report on inflation. Those market participants who had hoped that after the summit of the Group of Seven strengthening euro will in any way commented, were disappointed, and therefore the euro managed to break the 1.48 mark, but soon slowed down the pace of currency. But the Australian dollar so far this problem is not threatened, given that the commodity currencies have now set a new record in 2009 at the level of 0.9090 under the influence of the growth of gold, which do not have time to take new historic elite. Moreover, after yesterday's strong employment report on the reasons for tightening policy becomes more and more.
In the evening the representatives of the Federal Reserve made a mass exit to the press, but the greatest impact on the market made a speech Fed Chairman Bernanke. Although essentially Bernanke said nothing new (despite the fact that the economy is still some time need the support of the Fed, such assistance should be reduced to nothing as the economy recovers and the need to fight inflation), the last words drew particular attention to the market, and dollar demand in during the morning session. In the United States are approaching the long weekend, and the market, which for the most part sits in the sales dollar for dinner in Asia a little tweaking their positions.
Kansas City Fed President Hoenig has been set positively, noting that this dramatic crisis has passed and that the potential of the economy increase in the next 12-18 months, although growth will still be slow. Echoing Bernanke, he added that the Fed will keep policy accommodative, because, despite improvements in the economy, monetary policy must be proactive and be more neutral. Commenting on the decision of the RBA to raise rates, he said that this decision speaks of improving the economy of Australia.
Bank of Korea, despite the tightening of the RBA and its own very open statements in this direction, left the refinancing rate unchanged at 2%, which is possibly caused by the current strengthening of the Korean won. Indeed, the Koryo Bank was again forced to make an intervention in the local market, to prevent too aggressive growth won. Recently, such a trend among many currencies of Southeast Asia, since China last year repeatedly linked the yuan to the dollar due to a slowdown in export growth. Many central banks of Southeast Asia have shown a fairly high activity, and this topic was discussed many times in the newspaper "Financial Times". Such intervention was characterized by the fact that in order to balance the balance of the assets of their reserve portfolios as the Central Bank bought these and other major currencies against the dollar, particularly the euro.
In the transitional period between the Asian and European sessions, some currency pairs are traded above key support levels, trying to keep the uptrend. Published today, the data are unlikely to have additional support for the dollar as the trade balance for August is likely to demonstrate the increased deficit of $ 33 billion, however, if the above support will be completed before this, then this news will be only a temporary obstacle to a stronger dollar strengthening in the short term.
Other reports today belong to Canada: A report on unemployment, trade balance, and research in business and credit sectors. Prior to that in Europe will come releases on inflation and trade balance in Germany and the PPI in the UK.
Saxo Bank
In the evening the representatives of the Federal Reserve made a mass exit to the press, but the greatest impact on the market made a speech Fed Chairman Bernanke. Although essentially Bernanke said nothing new (despite the fact that the economy is still some time need the support of the Fed, such assistance should be reduced to nothing as the economy recovers and the need to fight inflation), the last words drew particular attention to the market, and dollar demand in during the morning session. In the United States are approaching the long weekend, and the market, which for the most part sits in the sales dollar for dinner in Asia a little tweaking their positions.
Kansas City Fed President Hoenig has been set positively, noting that this dramatic crisis has passed and that the potential of the economy increase in the next 12-18 months, although growth will still be slow. Echoing Bernanke, he added that the Fed will keep policy accommodative, because, despite improvements in the economy, monetary policy must be proactive and be more neutral. Commenting on the decision of the RBA to raise rates, he said that this decision speaks of improving the economy of Australia.
Bank of Korea, despite the tightening of the RBA and its own very open statements in this direction, left the refinancing rate unchanged at 2%, which is possibly caused by the current strengthening of the Korean won. Indeed, the Koryo Bank was again forced to make an intervention in the local market, to prevent too aggressive growth won. Recently, such a trend among many currencies of Southeast Asia, since China last year repeatedly linked the yuan to the dollar due to a slowdown in export growth. Many central banks of Southeast Asia have shown a fairly high activity, and this topic was discussed many times in the newspaper "Financial Times". Such intervention was characterized by the fact that in order to balance the balance of the assets of their reserve portfolios as the Central Bank bought these and other major currencies against the dollar, particularly the euro.
In the transitional period between the Asian and European sessions, some currency pairs are traded above key support levels, trying to keep the uptrend. Published today, the data are unlikely to have additional support for the dollar as the trade balance for August is likely to demonstrate the increased deficit of $ 33 billion, however, if the above support will be completed before this, then this news will be only a temporary obstacle to a stronger dollar strengthening in the short term.
Other reports today belong to Canada: A report on unemployment, trade balance, and research in business and credit sectors. Prior to that in Europe will come releases on inflation and trade balance in Germany and the PPI in the UK.
Saxo Bank
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