Currency exchange rates today: USD is ready to bump as euro rises

Currency exchange rates today: dollar fell against the euro after a report on employment in the U.S.

In brief: Currency exchange rates today: USD fell against the euro after the employment report. Euro climbs higher.

Currency exchange rates upset USD bulls today. Euro has risen in price to $ 1.256 from $ 1.251 on Thursday. The number of jobs outside agriculture in the USA in June fell by 125 thousand, while analysts believed that the decrease in amount of 110 thousand unemployment rate fell to 9,5%. USD goes weaker, as euro climbs. In the U.S., the volume of industrial orders in May of this year decreased by 1,4% compared with April.

It was said in a statement the Ministry of Commerce. Analysts expect decrease in this indicator should not exceed 0,5%. With the exception of orders for vehicles, manufacturing orders in May fell on the April figure at 0.6%. Unemployment in the euro area in May 2010. unchanged at 10%. This is stated in a report published today the European statistical agency Eurostat. Analysts predicted that this figure will be 10.1%. The euro is going through a crisis of confidence, there is only a loss of confidence in public finances in the euro-zone country, said on Thursday Juergen Stark, chief economist of the European Central Bank (ECB). At a conference in Frankfurt, Stark said that the question of the precariousness of public finances is not confined solely to the euro area, as a “worldwide phenomenon.” He repeated his already well-known argument that fiscal deficits in many advanced economies outside the euro zone, especially in the UK, USA and Japan are much higher than the average in the European Monetary Union. According to the European Commission, this year the aggregate eurozone budget deficit will amount to 6,2% of gross domestic product.

He repeated the comment ECB President Jean-Claude Trichet “qualitative leap” in the management of the euro zone, especially in monitoring economic policies and said that recent proposals to reform the management of the Council of Europe is totally inadequate. Stark believes that currently there is no alternative to the process of reducing the deficit. “We know that there is a time when the stimulation stops working” because of the negative effects of growing debt burden. Some of Germany’s banks exercised their legal right not to publish confidential information, which would have drawn a clear picture about the size of their capital and that they do not pose a threat to the financial system as a whole. This right is jealously guarded the laws of Germany and the law of the European banks and allows banks to break all the plans of European governments.

Now, as investors increasingly worry about the health of banks in countries of the European bloc, such resistance on the part of banks, may result in a backlash. The previous round of stress tests of 22 major European banks, whose results were made public in October, faced with a wave of criticism, because the report did not reveal any names of banks, no information about the problems, no other details for each country. On Thursday in an interview Borsen-Zeitung chapter of the Association of State Banks Christina Brand, representing the interests of the federal land banks, said that the “skeletons in the closet is no longer any”, and that this year’s economic recovery in Germany – many economists have raised the growth forecast to 2 % – would solve most of the cyclical problems associated with bad debts faced by banks

However, investors more concerned with the losses associated not with the German and Greek, Spanish and Portuguese assets. According to the Bank for International Settlements, only one of Greece is concentrated 40 billion dollars of potential losses of German banks. Many fear that if Greece will have to restructure the debt, banks have lost billions of euros. Such losses eat up their capital and significantly reduce the possibility of crediting the real sector, both domestically and abroad.

Ukrainian Globalist
2010-07-04 17:17, Currency news.

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