Thursday, October 21, 2010

EUR: Cpredy interest rates go in favor of the euro

The euro left on a worthy position this morning, in particular in relation to pound that promoted its growth above level 1.40. Against sterling it is possible to explain sales by the report on expenses and fears concerning probability further quantitative mitigation.ECB on the contrary, uses the best efforts to avoid conversations about full-scale QE and tells about ways of refusal of "provisional measures" (such as unlimited volumes РЕПО) in the beginning of next year more. From this it is possible to draw a conclusion that spreads under interest rates move to advantage of euro further, supporting uniform currency, as well as a proceeding diversification of currency reserves the Asian central banks. These factors continue to give support of euro against dollar revival.

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