Oil and the Euro Markets

Because without the filter of the strong euro oil bill would fall without extenuating circumstances on all consumers. Markets. Review of foreign exchange. Investors turn to seek the dollar as a refuge. Date: 17/03/2005 Source: The Bulletin. The dollar gained ground against the euro as moderate after the investors to seek refuge in the greenback against the declines suffered by equity markets, especially during the day yesterday, and the uncertainty arising from high oil prices. The euro started the session in the main European markets over the benchmark of $ 1.34, but did not stay long in this situation. During the morning, investors bet the greenback firmly to the uncertainty it poses to the markets rising oil prices, which the U.S.

currency returned to set up as a proper refuge. It is true that the dollar was punished in yesterday’s session with new record figures in the current account deficit of the first global economy. However, investors have the stimulus of the Fed meeting next week hold, which could yield a further rise of the official price of money, which the boldest bet that will be more aggressive than the last enacted by issuing agency. The upward trend in prices reflected in the most recent data and the increase in the deficit figures have led experts to believe that the scenario is ripe for the Fed to continue raising the benchmark interest rates in the U.S., which favored the greenback rises. In addition, the dollar also benefited from the encouragement of weekly unemployment figures, which met one hour before the opening of Wall Street. The requests weekly jobless claims fell by 10,000 during the last week and investors welcomed the data with optimism, despite the forecasts pointed to a slightly larger decline. Figures were also positive indicators index, pointing to an improvement in the situation of the world’s biggest economy. Meanwhile, the yen halted its upward trend against the greenback in recent days and showed declines driven by uncertainty caused by the rise in oil prices. Japan is one of the main importers of black gold, with so the higher prices is a major setback in order to consolidate the growth figures and away the ghosts of the recession.

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