Thursday, 20 August 2009

The main impact on the forex market still continues to provide sensitivity of investors to risk.

Yesterday, the main influence on the forex market dynamics have oil prices that have risen sharply in response to the unexpectedly sharp decline in oil reserves in the United States. This news has led to an increase in the propensity to take risks (investors perceive the decline in oil reserves, thus increasing the consumption, indicating a growth of the economy) that have a negative impact on the positions of the Japanese yen and U.S. dollar. Prior to the announcement of oil reserves in the United States in the financial markets dominated by pessimistic feelings associated with the situation in China. Investors are concerned that China, a decline of incentives (in particular, bank lending), which could undermine the strong recovery of world economy. In addition to strengthening U.S. dollar and Japanese yen against European currencies has contributed to the publication of the protocol the Bank of England, which demonstrated that at the August meeting, the Bank discussed a significant expansion of quantitative mitigation. However, in the end, all these negative feelings are reverse data on oil reserves in the United States. Thus, in the U.S. session against the backdrop of a sharp increase in the propensity to risk-currency asylum (Japanese yen and U.S. dollar) has fallen across the spectrum of forex market, the sample, while a number of local technical levels. Nevertheless, analysts are not inclined to expect the sustainable continuation of this trend, because concerns about the prospects of the Chinese economy has not happened, and if they get developed in the form of negative macroeconomic statistics, in general, may lead to a sharp correction of the main stock index, which rose strongly last month. In turn, the correction of the stock market directly affect the FOREX market as a strengthening currency havens. Thus, the local currency market prospects remain uncertain and largely dependent dynamics of the stock market and the receptivity of investors to take risks. Today, there are little important macroeconomic publications. There are, perhaps, the only data on retail sales in the UK, which could trigger a short movement in the market of forex in cross a pound.

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