The Old World is passing over recession again. The downturn of the indices have been going on everywhere since this morning. Investors change their positions onto short-term ones. The main cause of such recession is sudden devaluation of bank and raw stocks.
The great economic downturn occuring all over the world has effected the situation at the London Stock Exchange (LSE).
USD attempts to rise up in price on background of EURO. Analysts consider that this time European currency has fewer chances to reach the level of $1.5\€1. European currency is now supported neither by Pound nor by Yuan and Yen. But it has Russian Ruble as unexpected ally.
Analyst’s forecasts about rate of currency to the year 2010 depend on the development of recession processes. Some specialists consider the reason of financial crisis in violation of ethic standards. That is why they call to revival of virtue in financial markets.
Analysts of Forex consider that gold prices will grow up to $2000 per ounce. To their mind the yellow metal is able to grow up even while stabile USD and in spite of rising oil price. Gold becomes an independent equivalent.
Gold stumbled on growing dollar. Undoubtedly dollar shows real power in these troubled times. Gold slipped lower in USA and Europe on Friday as the dollar firmed, dampening the momentum which has lifted prices more than nine percent this month after reports of central bank gold buying.
Dollar goes crazy. Today is the judgement day, – said Alek Joachim, currency analyst of Forex Argentina. Dollar tried to attack euro twice one day. Surely it was not the best day for such effort… Investors dumped stocks in favor of safer assets including the dollar on Thursday following discouraging signs of a subdued economic recovery.
EURO can lose its leadership due to the US currency. USD is going up. But it is too early yet to give it a marathon status. USD is doing its best to rise up today in spite of decreasing indices of stock exchanges.
The rate of EURO to USD will grow up if the US currency takes urgent measures to stabilize its positions. The matter is not only that USD needs financial support but that the US currency requires the moral support of the US Federal Reserve and exchange analytics as well as the President of the USA.
A bubble is made for burst. But a bubble probably knows the time and the reason of its going down in history. It is a fact. You make a mistake supposing that the number of bubbles has been reduced. The mass rush in the markets of risky assets such as shares, oil futures and other raw-materials began in March, 2009.
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