Friday, February 18, 2011

Tensions in the Middle East is not abating

Political protests have become an integral part of the Middle East and North Africa (MENA) for several weeks, absolutely not subside. Yesterday there were reports of serious clashes between supporters and opponents of the government in Tehran. In Libya, located between Tunisia and Egypt, hundreds of protesters took to the streets of Benghazi (second largest city in Libya) and Tripoli, demanding the resignation of Prime Minister. Protests in Bahrain and Yemen are continuing. In the Bahrain government actively suppressed protests at night. Stock indexes in the region yesterday on very low volumes lost by 1-2%. Sterling has returned to where to begin. A pound was a real shaking, which eventually led him to both the dollar and the euro to the same levels that were before the release of statistics on CPI, letters from the Governor of the Bank of England and the report on inflation. The main tendency in the letter was to raise doubts in the markets in the rate of policy tightening, as King pointed out a number of caveats in his letter Tuesday. Mortgage markets 80% chance of raising rates in May compared to 100% observed the previous week.

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