Friday, October 8, 2010

Currency wars can renew recession

In spite of the fact that the dollar was a little stabilized at night, conversations on currency wars proceed in a press before key international meetings in Washington. At the same time our basic feeling – not to wait for much. Yesterday head ЕBU was careful not to comment on discontent or something another concerning euro that would be true, in our opinion. A problem that the majority of the countries now on deserted island concerning currencies. Unilateral actions on easing of own currencies were (as in a case with Japan) and without doubts will be (in a case with an euro area) in большей parts inefficient. However, as has specified yesterday Dominik Stross-Kan from IMF, now anybody doesn't have desire to carry out the coordinated interventions. It increases probability of individual actions for protection of own interests. But, as have shown early 30th years, it can become terrible for global growth and can worsen position with recession renewal in global economy.

Exhaustion from the big levels. Today all spins round statistics on employment in the USA, but already some exhaustion in the market форекс yesterday was observed. The euro has managed to arrange break above 1,40 during press conference EBU, but only for a while. The followed restoration of dollar to the majority of majors has rejected euro from this level. The sterling was dragged on last data on economy as because of lower activity, and weakness of the market of habitation, taking 1,60, but then having lost track of this level on now. In the meantime осси remains rather to more live, not only having flied up on a rise in prices for raw, but later having fallen, for some time having decreased to 0,98.

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