Tuesday, March 06, 2007

Forex News: 06.03.2007 Global collapse of stock exchanges influenced Forex

“The beginning of the week was marked by abrupt rise of dollar toward euro and pound sterling, and simultaneous fall toward Swiss franc and yen”, Georgiy Fedotov, NorthFinance financial analyst.

“Global collapse of stock exchanges finally influenced Forex market. The abrupt rise of yen and Swiss frank was conditioned by the fact that many investors took currency credits with low interest rates and transferred them into currencies with higher rates, using them for gambling at stock exchanges. With the global collapse of stock exchanges, the risks of these operations became very high and the participants of the market made transfer operations.

During this week ECB meeting takes place, as well as the meetings of Banks of Canada and New Zealand. If the kea interest rate is increased in Europe by 0.25 points, it will be a great surprise. The kea rate is possibly to be increased in New Zealand. Other Central Banks are not like to change their policies.

EUR/USD and GDP/USD are subject to “bear” sentiment”.


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