Friday, February 25, 2011

Forex market news:Oil infection

The question that markets set for this week, when skyrocketing oil prices will turn out the inflationary problem in the problem of growth. Here there are no simple and fast rules. Higher oil prices increase the cost of fuel, which spreads throughout the economy, increasing the cost of products through the transportation, etc. This week we saw quite a dangerous signal when the risky assets were sold while increasing oil prices. The British economy is particularly sensitive to fuel costs - a jump in prices for gasoline and diesel, similar to what we are witnessing the last fifteen years, inevitably results in a recession. If so, do not be surprised if inflation expectations in the coming days will noticeably fade.

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