FOREX TRADING

Yen Falls And The EUR Rises Against The US Dollar As Dubai Declares Will Get Fun

Following Abu Shabi’s pledge to bail out, concerns that the biggest banks in Europe will suffer writedowns on loans in the gulf state have been relieved. Uncertainties on Dubai debt problems have been removed once the announcement has been made, as well as worries over the losses suffered by financial institutions across Europe and the UK – opinion the analysts in the market.

Some of the funds will be paid to ‘trade creditors as well as meet interest expenses and company working capital’ – statement that urged the Euro to gain against the US Dollar. After a strong decline to $1.4586- its weakest level since the 5th of October, the Euro rose to a level of $1.4678 as of 6:45 a.m. in London.

Dubai’s announcements had a slightly different influence on the Japanese currency – the yen fall sharply, as benefited when Dubai concerns were at their heights in November. The Eur managed to stay flat on the day at around a level of 130.44 yen, after a fall of 129.19 earlier.

A report by Bank of America Merrill Lynch reveals that British bank – including RBS and HSBC – arranged about $ 4.4 billion of Dubai’s world loans. The pound experienced a rise from the $ 1.6262 level to $ 1.6284.

As for today, the markets seem to be more concentrated on the technical side, with a quite day on the fundamental side. The Monetary Policy meeting from 7:30 pm GMT will provide an in depth view into the economic conditions that influenced the Reserve bank of Australia’s decision to set the interest rates. With a medium influence on the market, the Swiss Franc PPI has been released, as a leading indicator of consumer inflation. With an expected forecast of 0.2 % and a previous consumer sentiment of -0.4%, the actual today’s data shows rather a flat rate than an increase or decrease: 0.0 %. Even so, this might have a slightly positive influence on the CHF and the stock market.

Finotec Group Inc.

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