The U.S. dollar is stable against other majors on Thursday and it can continue growth as the investors consider the FRS not to declare new incentives this week.
The market players are scared of new recession in the USA and are not sure that the FRS head Ben Bernanke is ready to start negotiations about another quantitative easing programme during his speech at the conference on Friday. A few observers think that the fact that Bernanke did not say anything to support the expectations of further actions from the part of the central bank underline this step is unlikely. In the article published in the Wall Street Journal it is stated that Bernanke’s team does not comment on the situation as well. “This seems logical if we recall that at the meeting of the Open Market Committee which occurred a few days ago, it announced keeping the short-term interest rate near nil for the nearest two years”, stated the dealer of Mizuho Corporate Bank. - And Beranke will hardly go further now.”
The durable goods orders upsurged in July in the USA and on Wednesday the Congressional Budget Office stated that the American budget agreement and decrease of the interest rates will reduce the forecast deficit by twofold within 10 years.
The euro was not able to reach the high of 1.4500 versus the U.S. dollar which it had hit on Tuesday for a short span of time. This denotes that there are still risks of its deeper plunge in future, said the currency analysts from IG Markets Securities D. Isikava. The pair may decline to 1.4250 at nearest sessions, he added.
