Thursday, July 9, 2009

Wednesday Business Events Review

Wednesday the US dollar continued strengthening its positions against European counterparts as currency traders were unlikely to risk. Investors` positions also helped Japanese yen to contest against the major forex currencies, as it remains one of the main reserve currencies.
Yesterday attention of currency market participants was drawn to Italy, home of another G8 economic summit. Chinese delegation headed by Hu Jintao had to quit the summit due to continuing disorder in some regions of Peoples Republic of China. Investors were not encouraged by such a fact as a result traders were not seen to risk that day.
The general sense of the first statements of summit participants is summed up as economic outlook remains mixed as serious risks cannot be ruled out. These statements gave grounds for further forex quotes decline and sharp oil price fall. As a result EUR/USD ended the session reaching 1,3885 level, GDP/USD traded 1,6070.
Thursday the most expected event in economic calendar is considered to be the decision of Bank of England on its benchmark Repo rate. It is expected to remain at the same level of 0,5 percent. Besides, market players should focus on UK international trade balance sheet, which is assumed to perform positive dynamics comparing with the previous period.

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