News Economics by USD dollar yields to the euro and pound yesterday, the dollar fell against most currencies, since the progress of the various stock markets, and the results concerning the American labor market that exceeded expectations, undoubtedly affected the demand for the dollar as a haven currency. Yesterday the dollar lost ground against the euro and reached the 1.3320. On the other hand, against the pound you behaved in a similar way reaching the 1.5123. In April the American companies, apparently, decreased speed reduction of jobs, so it is hinted that the worst of the recession may already have happened. Last month payroll of workers fell to 491,000, figure that was below official estimates and is the lowest since October. On the other hand, the stabilization in consumption, after the crisis already generates expectations that the financial crisis could be completed in the middle of this year. Today will be published relevant data both in the United States and in the Euro area.

It is estimated that their currencies will suffer great volatility, while awaiting data from the American labor sector and especially monetary policy which will announce both the BcI and the ECB. EUR European rates cuts yesterday the euro advanced against the dollar, but gains were limited, above all, because it is estimated that the ECB reduced rates of interest of reference in a quarter point, taking them to 1.00%. In addition, it is estimated that the ECB might announce unconventional measures to stimulate growth in the region. The euro advanced against the dollar and closed at 1.3320. Recall that last month the ECB carried rates of interest at 1.25%, in an attempt to stabilize the economy of the region. Now, the Euro zone suffers from forcefully recessive threat, a deflationary situation, and a government deficit on the rise. As a result, it is estimated that the ECB will reduce interest rates during the day today, and also possibly several Member States announce in the short term new plans for economic stimulus.

Sorry, comments are closed.