Rus News Journal

Forex: the euro has added “ a figure “

the Euro on Friday, on May, 27th, is very strong and shows considerable growth. At 9:00 Moscow time its course has made 1,425 dollars, and, seemingly, while purchases will not be slowed down. The data about gross national products of the USA published the day before became one of the reasons of growth of uniform currency. The American economy has grown in I quarter 2011γ. On 1,8 % - these are the reconsidered given Ministries of Trade of the USA. They coincide with an estimation made the same department one month ago. According to observer CNBC of Rika Santelli, the majority of analysts expected that the reconsidered figures will essentially above - a consensus on Uoll - strit made plus of 2,2 %. So the published figures it is a strong negative for the market. “ revision downwards the data about consumer expenses became the main negative moment: if the initial estimation made 2,7 % of growth, definitive - only 2,2 %. At the same time the estimation of growth of stocks is raised. All data specifies in real delay of economic growth “ - the expert ascertains.

thus, the USA cannot show confident growth even at weak dollar and in the ultrasoft monetary policy. This fact can push the American authorities to the next stimulating measures and to force them to print a new portion of dollars. Of it players also are afraid, buying up the European currency. At the same time officially the market prepares for the termination of program QEII.

“ the Most important question for us there is a question that will be with the market after end of the second round of quantitative softening in June. After the termination of the first round the markets felt not especially well, - the director for investments Finaport Group in Asia Hans Gett speaks. - I am not assured that the history will repeat, but risks remain. Quantitative softening strongly correlates with share and the currency market, it is the strong psychological factor for investors. Quite probably that its end will affect mood of players, and the stock market can decrease, and the dollar - considerably to grow “ - the expert considers.

meanwhile some players have already started to prepare for end of the program of quantitative softening. “ we attentively look at funds ETF based on a dollar exchange rate. On papers of one of them - UUP - very high activity, especially on options ρall recently is observed. Traders buy June options ρall on the price 22 dollars, thus that now actions of this fund bargain approximately at level 21,7 dollars Obviously, buyers count that the dollar will remain strong and to grow at least the next month. It it is no wonder taking into account weakness of euro and nereshennosti the European problems. I think that the currency of the USA can quite remain in “ bull “ a trend still at least some weeks “ - operating director TD Ameritrade Joe Kinahan believes.
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