The European single currency braces for the Communist Party’s third plenary meeting fixing at the level of $1.38. Meanwhile, the traders remain cautious and reduce the purchases of the dubious assets. They say the euro may be hurt by the upcoming economic facelifts China is going to implement. Thus, November’s milestone meeting is believed to set the tone for the economic reforms in China. It is expected that the plenum will bring about the economy, tax, and finance revamps. Besides, in efforts to restrict migration between rural areas and cities, a new land reform was developed to address faster urbanization. In this connection, the currency market stood still ahead of any changes. Top Communist Party leader Yu Zhengsheng made bold statement vowing to “principally explore the issue of deep and comprehensive reforms”. The reforms this time will be broad, with major strength, and will be unprecedented. Inevitably they will strongly push forward profound transformations in the economy, society and other spheres,” he concluded. According to the plan, the economic initiatives would steer the world’s second economy. The economists anticipate that domestic demand, based on consumption, services sector, and innovations, will now be in focus. If this is the case, the share of China’s producers will decrease considerably on the European markets, whereas Europe will be able to increase its exports to China, which will be favorable for the European economy and contribute to the euro rate stabilization.
