Kamis, 31 Maret 2011

Forex: Why we have a strong euro exchange rate


Euro / dollar and euro-sterling exchange rate is higher turnover in the morning.
Forex is expected that data from the U.S., in the form of non-farm payrolls for release tomorrow.
Although agriculture is the lack of wage labor dollars, what is it drives the price is € forces important? 

Euro Exchange Rate

Bank of America analysts, Merrill Lynch said that the euro is supported this year by an independent economic recovery in the major economies of the euro area and the expectations of ECB tightening.
"Withdrawal of crisis-related financial policy and fiscal consolidation does not slow down the progress of the ongoing recovery in the euro zone core. But closing the output gap and rising commodity prices, inflation has risen in the euro area," says one morning to watch forex insights from Bank of America.
In response to the ECB hawks have been using the rhetoric among the G10 central banks, as well as send a strong signal to the governments of the euro area, the perimeter of the crisis is addressed.
And now forex analysts agreed that interest rate differentials and expectations of the most important factors in foreign exchange markets.
BofA, who expect the market that the ECB is about 100 basis points by the end of the year, attracting well above the expectations of other G10 central banks. I
Before us, we see that Portugal may, upon an official request for funding, such an extension of the crisis, which has so far visited Greece, and then in Ireland.
"However, it seems that the euro exchange rate so far, mainly because the ECB is to attract, so while Spain convinced the markets that might seem to introduce the necessary reforms to their fiscal imbalances and address of the financial sector. In fact, in Last year, a strong correlation between the discrepancy CDS spreads of the euro area and euro broke this year, "says noted the forex market.

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