Euro - an outsider

Last weekend, the world currency market (Forex) the dollar was again a favorite among investors and currency speculators. Moreover, and this morning the dollar appreciated against the euro. A single European currency fell like leaves in late autumn. As experts note, there were several factors that had a negative impact on the dynamics of the euro. First of all, market participants began to disturb the stress test results of European banks, which are unavailable. They will appear only on July 23. However, apparently, the market is pessimistic. Although it would seem, last week, stress tests were positive signal for the euro. Recall that the euro trades on Friday fell to 1.2927 dollars per euro against 1.2933 dollars per euro the previous day. The second factor: again, "raged" by international rating agencies. At this time was marked by Moody's. It lowered the ratings of Irish government bonds, which, like Greece, is included in the eurozone. It can be assumed that the euro "selling" as negative news from the U.S.. Compared to the dollar, the euro - a risky currency. When the economic situation improves, investors prefer the euro dollar and vice versa. True, there are exceptions. States reporting disappointing U.S. companies. On reducing its financial results for the second quarter reported a U.S. bank Citigroup and financial services company Bank of America Corp. (BofA). Perhaps that is reporting the results of these banks have raised doubts about the sustainability of European investors, the largest financial conglomerates. In addition, the rate of sales of American corporation General Electric Co. (GE) in the second quarter did not meet analysts' expectations, reaching 37.4 billion dollars, while the predicted value of this index higher by 2.3%. Makrostatistika podkachala too. Center of the University of Michigan surveys of consumers reported that consumer sentiment index, which reflects the confidence of households in the U.S. economy, in July 2010, according to preliminary estimates, fell to its lowest level over the past 11 months (66.5 points) with 76 points in June. Experts believed that the decline will be less dramatic. Bureau of Labor Statistics U.S. Department of Labor "pleased" the data on inflation. Growth in consumer prices in the U.S. in June 2010 slowed down to 1,1% in annual terms from 2% in May. Meanwhile, it was expected that the annual U.S. inflation slowed in this period only up to 1,2%. At the same time on a monthly basis in the U.S. in June, the third consecutive month there is deflation: consumer prices fell by 0,1% compared with May. For the U.S., low inflation - is bad. This suggests a lack of demand, desire to fly, uncertainty of ordinary Americans in their future. Low purchasing activity provokes decrease in production volumes, retail, etc. Still, the main negative for the world's playgrounds should be expected from the eurozone, experts believe. Despite the fact that at the moment we see the correction on a pair of euro dollar (euro slightly increases), the analysts the impression that the European single currency is about to forever lose the trust of investors. "The basic ideas for the market this week will be Friday's publication of the stress test of European banks and, probably, not only directly by their results - appears to be leaking rumors about the outcome will also largely determine the dynamics of currency trading»,