Currency exchange rate today: euro falls, dollar is rising, pound is at a standstill

The exchange rate euro remains in high risk zone

In brief: Dollar exchange rate starts to rise with the overall positive and lower oil prices. Speculators confidently sell the dollar on the short interval of time.

Private markets in the U.S. and the UK provided an excellent atmosphere of tranquility and lazy fluctuations in the currency market. Of course, the absence of a large number of players could lead to high volatility, but nothing like this has happened, except for the weakening of the yen in response to political developments in Japan. Nevertheless, we expect that in the near future the dollar will retain its status as the most popular currencies, given the uncertainty about global economic prospects.

The euro zone continues to struggle with the debt crisis. The UK problems with government spending, in Japan, the government loses the confidence of the population, and in the meantime, in Palestine, and reaffirmed the excitement. All this just to hand the dollar, although there is one thing that can bring down the currency from the pedestal – the data on the labor market. Thus, we have to determine is really justified by market expectations about the addition of 500,000 new jobs. Now pay attention to the employment component of ISM in the manufacturing sector.


On Monday, the euro zone agreed to mitigate the absence of Americans and Britons and released a series of economic reports. Money supply M3 in the euro area continued to decline in April, while lending to the private sector increased for the first time since August 2009. In addition, in May, the confidence of Europeans to the economic forecast unexpectedly fell, while inflation was weaker than forecast in the background of the fact that the debt crisis in the region, severely shook the markets. Index of economic and consumer confidence fell to 98.4 against 100.6 in April. Consumer prices rose by 1,6% y / y, while economists expected a gain of 1,7%. As we have seen in economic terms in the region is also not so smooth. In addition, and in the camp of the ECB is brewing controversy.

Governing Council member Axel Weber and ECB Mario Draghi called as soon as possible to stop the program purchases of government bonds. The program is a “threat to stability” and “should have a clear purpose and scope,” said Weber, who is also head of the German Bundesbank. Managing the Central Bank of Italy, Mario Draghi, speaking in Rome, said that the purchase “must be terminated immediately, as it will be possible.” So far it looks as if the ECB funding needs wasteful European countries. Of the planned today reports interesting data on business activity in the manufacturing industry. As well as indicators of the labor market. If these reports are talking about the weak economic situation in the region, it can only increase the pressure on the euro and help him break the mark in a pair of 1.22 to the dollar.


In spite of that British markets were closed Monday, it did not prevent the pound to demonstrate a fairly decent fluctuations, during which he repeatedly managed to cross the mark in a pair of 1.45 to the dollar, the result still remained higher. In addition, we have received and the economic report. Housing prices in Britain rose in May, the tenth consecutive month, since the reduction in stocks of unsold housing has allowed agents to raise prices. Today, from the reports we see only the data on business activity in the manufacturing industry, which can provide the currency of any impact only in the case of a sharp deviation from the forecasts. We hope in the political picture – that the news of the new coalition can be a sufficient catalyst.


The Japanese currency suffered in response to the output message that the Social Democratic Party announced a break tripartite coalition. As is known, uncertainty about the prospects for providing the greatest pressure on the national currency. The results of an opinion poll showed that more than half of voters want the Prime Minister Yukio Hatoyama resigned and only 20% of voters believe that he copes with his work. All of this assumes that the ruling party could lose control of parliament, which will only exacerbate the confusion inside the country, burdened with huge budget deficit. In addition, another negative factor does not want to leave the Japanese scene. Deflation has long been an integral feature of the economy.

Ukrainian Globalist
2010-06-01 09:51, Currency news.

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