Though Wednesday Euro-zone data appeared unexpectedly positive to the euro, by the end of the week the euro currency exchange rates turned out to be sad. Euro continues its three-day drop, falling today below $1.25 and therefore establishing new 14-month low.
LiteForex analysts note that for today morning the European currency has reached new minimum. Now the correlation EUR/USD is on 1.2516. The forecasts to the end of the day are still negative: 1.248-1.272.
European Union has just created the largest program of stabilization in the world. Its scope is going to reach 750 billions of euros. The plan was approved on Friday, May, 7, at the summit of European countries. Asian currency markets have just reacted to this step by growing of euro value. Also European Central bank is going to buy the sovereign bonds of European countries.
U.S. has a chance. Single European currency continues to adjust to the session highs and is now in the sights of bears were orders to buy about $ 1.3450, below which is rumored to be a foot.
The common European currency is doomed to fall. And the whole Euro zone is to blame. The senior currency strategist of Westpac Banking Corp. in New York considers that rescuing Greece at best will only delay inevitable devaluation of common currency.
Gold has unexpectedly lost its value along with Dubai World bankruptcy. This morning exchange has lead yellow metal to the minus. Analysts of market don’t even intend to forecast the future of gold rate.
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.