Market review for 29.03 – 02.04, 2010

Thanks to the reached agreement between the Euro-zone and the IMF regarding the Greek issue last week, the positive influence lasted on Monday as well.

Thanks to the reached agreement between the Euro-zone and the IMF regarding the Greek issue last week, the positive influence lasted on Monday as well. The market participants were configured positively, and the demand for the high-risk currencies grew. The euro rate demonstrated maximum levels against its competitors. The EUR/USD rate reached the $1,3490 mark. Following the euro, the pound strengthened as well. The UK fundamentals, which were released on Monday, rendered support to the sterling. Thus, the Net Consumer Credit and the Net Lending Sec. on Dwellings turned out to be above the forecasts. The GBP/USD pair reached its maximums at the level of $1.5018.

According to the published information on Monday, that the Reserve Bank of Australia was planning to increase the principal rate soon, the Australian dollar rate grew against the US dollar.

Against the background of the world economy rehabilitation, the oil rate grew and reached maximum at the level of $82.47 per barrel. And the announcement of the World Council on Gold regarding the forecast, that gold consumption in China would probably double, rendered support to the “yellow metal” rate.

In spite of the growing demand for the high-risk currencies, the Greek problems had a negative influence on the euro dynamics again. In particular, the Greek bonds, which were placed on Tuesday, had insufficient demand. And the speculations, that Greece would continue to suffer from financial problems, strengthened, which therefore pressured the euro. After the pair EUR/USD reached its maximums at the level of $1,3530, the rate dropped to $1.3394. The US fundamentals, which were released on Tuesday, rendered temporary support to the American dollar. The US consumer confidence indicator turned out to be above the forecast: 52.5 against the expected level of 51.

The positive news, which were published on Tuesday in Great Britain, resulted in a sharp growth of the sterling rate. The Nat’wide House Prices index grew for March and happened to be above the forecast: its factual level of 0.70% against the expected level of 0.20%. In addition, the UK GDP value for the 4-th quarter demonstrated growth. And the GBP/USD pair reached its maximum around the $1.5090 mark.

At the same time the industrial production change in Japan showed a stronger decrease, compared to the expectations. This factor pressured the yen. And the USD/JPY pair demonstrated its maximums around the Y93.00 mark.

The positive Euro-zone fundamentals were released on Wednesday. The unemployment level in Germany for March dropped and turned out to be below the forecasts. Consequently, the euro rate reacted with a confident growth. And the EUR/USD pair increased and set its maximum at the level of $1,3547. The negative US news, which were published on Wednesday, rendered additional pressure on the American dollar. The ADP employment change for March showed a considerable drop, in spite of the positive forecast: factual decrease for 23 thousand against the expected growth for 40 thousand. The retail sales volume in Australia for February showed an unexpected drop: its level decreased for 1.40% against the forecasted growth of 0.30%. Therefore, the Australian dollar was pressured strongly.

The positive US fundamentals were published on Thursday. In particular, the initial jobless claims dropped and turned out to be at the level of 439 thousand against the forecast of 440 thousand. The ISM manufacturing index grew significantly and reached the level of 59.6 against the expected level of 57. According to the opinion of some experts, there are certain signs of the of the fast US economy rehabilitation.

Against the background of the optimistic moods, which prevailed in the market on Thursday, the euro rate grew. The demand for the high-risk currencies increased. And the EUR/USD pair strengthened in the range of $1.3590. The pound also demonstrated a positive dynamics. The PMI manufacturing index in the Great Britain for March grew and happened to be above the predictions. And the GBP/USD pair established its maximums at the level of $1,5295.

The oil rate continued its growth on Thursday and reached the level of $84.90 per barrel. And the gold prices also increased and consolidated around the level of $1,117.80 per ounce.

On Friday the US dollar strengthened against its competitors again. The positive fundamentals on the US labor market rendered support to the American dollar. And the EUR/USD pair decreased to the level of $1.35. The GBP/USD rate dropped to the $1.52 mark.

The company commenced operations in January 2007, established by a professional gold and foreign exchange dealer with over 10 years of experience. Currently domiciled and regulated in Panama.Author Risk Warning: You should not invest in FX or CFD the money you cannot afford to lose. An investment in FX and CFD is potentially risky to the investor, and in some cases the investor may not get back the amount he has invested. With... More