Friday, November 13, 2009

Do not believe that the world has changed

Financial Analyst FxPro Alexander Kuptsikevich: Despite grand statements about the structural changes in the global economy in the world remains a very strong desire to leave everything as is. Chapter Geithner, U.S. Treasury this week repeated the old words of "strong dollar policy" and the responsibility of States to other states for such a course. Russia called on States to take concrete action.
Overloaded sales dollar FX market in the absence of news at first tried to grow on data from China, but soon strayed to the side of the dollar (perhaps a tribute Geitner), that is, adjusted the recent decline, falling to 1.4820. However, trade remained in the same range, while maintaining the uptrend in the pair euro / dollar, which is observed in March. Stock sites operated symmetrically, however, managed to update the annual maximum, but then retreated once in a quandary.

On the one hand, we have the growth of U.S. GDP to 0.9% in the third quarter, in Germany 0.7% France 0.3%, increased activity in the housing market and a clear reversal of the monthly labor market dynamics - it good news.
Bad lie in the fact that the unemployment rate in the United States, and around the world is very high, and further projections assume its subsequent growth is about a year.
The result is that growing consumer uncertainty that keeps lending costs and depressed. Oil reserves are growing, gas storage facilities are overcrowded. Growth States, Germany, France, and Russia leads frighteningly sharp rise in budget deficit. In many countries it is a record in relation to GDP for many years, but in terms of money and did the unprecedented. And in the foreseeable future, no one is going to refuse to stimulate the economy through tax breaks and maintenance of the labor market.

The deficits are growing, export-oriented countries receive support from the restoration of consumer countries and re-accumulate reserves. The only difference is that in Asia a few more "like" gold, which successfully updates the maximum after the maximum. But this does not prevent us back to the old trend: when the world economy grows, the dollar falls. Is it that this time it will be dynamic, because it benefits the U.S. and China. Target next week 1,51-1,5150 on EUR / USD, 28,50 on the USD / RUB. Gold will cost 1,130 dollars per ounce and oil $ 80 per barrel.

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