Market review for 05 – 09. 04, 2010

In the beginning of the previous week many of the market participants were celebrating Passover holidays. At the same time positive US fundamentals were released on Monday. In the beginning of the previous week many of the market participants were celebrating Passover holidays. At the same time positive US fundamentals were released on Monday. In particular, the ISM non-manufacturing composite index for March grew to the level of 55,4 against the forecast of 54. And the pending home sales increased for 8.20%, while the forecasted change was at 0.00%. Therefore, the interest to take risks increased and the US dollar turned out to be under pressure. And the EUR/USD pair reached its maximums at the level of $1.3500.

In the beginning of the week the oil rate grew against the background of the rehabilitation of the world economy. Its maximum has been reached at the level of $86.85 per barrel. Therefore, the Canadian dollar continued its positive dynamics against the US dollar.

On Tuesday the euro demonstrated its negative dynamics due to the complications over the Greek issue. The IMF financial support conditions were not approved by Greece. Therefore, the bail-out plan turned out to be doubtful again. And the EUR/USD pair decreased to the level of  $1,3354. But after the release of the US positive fundamentals, the high-risk currencies managed to rehabilitate a little. The FRS intentions to leave the principal rate at the record-breaking minimum level supported the investors’ optimism.

At the same time the UK positive news were published in Great Britain. In particular, the PMI construction index grew and happened to be above the forecasts. But in spite of that, the sterling demonstrated a downstream trend due to the pressure from the country’s political instability. And the GBP/USD pair dropped to the  $1,5125 mark.

According to the expectations, on Tuesday the Reserve bank of Australia decided to increase the principal rate to the  4,25% level. The Australian dollar reacted with its growth.

The growing demand for the raw materials continued to render support to the oil prices. The oil rate stayed above the level of  $86 per barrel. The gold traded around the $1,124.20 mark per ounce.

On Wednesday the speculations regarding the negative influence of the Greece problems on the Euro-zone economy rehabilitation continued to pressure the euro. The Euro-zone fundamentals turned out to be diversified and could not support the euro. The EUR/USD pair decreased from the level of  $1.3400 to $1.3325. The sterling showed diversified dynamics. The rate decrease was a result of the released PMI services index in Great Britain, which turned out to be at the level of 56.5 when its forecast was 58. And the GBP/USD pair dropped to the range of  $1,5150. At the same time the American dollar demonstrated its consolidation against its major competitors.

 According to the published information on Wednesday, the Bank of Japan decided to leave the principal interest rate at the record-breaking minimum level of 0.1%. As a result, the yen was under pressure. The USD/JPY pair traded in the range of Y93,20-Y94,30.

According to the expectations, on Thursday the ECB left the principal rate unchanged at the previous level of 1%. Concerns over the possible default of Greece continued to render critical influence on the euro dynamics. But after the announced assurance of the ECB president, Mr. Trichet, that Greece would not face default, the euro rate started to rehabilitate. The negative Euro-zone fundamentals did not pressure the euro (the reduction of the monthly and yearly Euro-zone retail sales turnover). The EUR/USD rate showed its minimums at the level of  $1.3281 and then rehabilitated to the $1,3365 mark.

According to the experts’ forecasts, the Bank of England left the principal rate unchanged at the previous level of 0,5%. The positive data, which was released on Thursday, supported the sterling. The industrial production as well as the manufacturing production level grew and turned out to be above the predictions. Consequently, the GBP/USD pair increased and reached the maximums at the level of $1,5280.

Against the background of the speculations regarding the possible increase of the principal rate in Australia, the rate of the Australian dollar showed a considerable growth. The increase of the employment level for March supported the national currency. 

By the end of the trading week the EUR/USD pair showed some rehabilitation and reached the level above the $1.3495 mark. And the GBP/USD pair reached its maximum at the level of $1,5370.

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