Fundamental review of Forex market for 09.02.2010

Yesterday, the trading on EUR/USD currency pair was calm because there was no significant macroeconomic statistics. The day closing level was 1.3655. The highest level was recorded at 1.3744. The lowest value was 1.3620.

Speculators have been talking that Greece can receive a helping hand soon as ECB president J.-K. Trichet left Sydney early to attend a European Council meeting on Thursday. “It seems that the euro downward tendency is remaining at the market. However, any positive information from the EU summit will allow the European currency even partially win back losses”, - said Akira Hoshino from Bank of Tokyo-Mitsubishi UFJ.

The US Federal Reserve System can sell some assets in this year to shrink bloated balance in aid of to prevent accelerated inflation, said chief of the St Louis FRB James Bullard in the interview to Reuters. In the last year, the FRS actively bought long-term securities of the Treasury and other bonds in order to support the economy, financing operations on account of liquidity injection in the financial system. During the US economy recovery the Central bank will have to decrease money quantity to prevent an inflationary jump.

Most likely, the US economy should grow by more than 3% in the first half of the year, while unemployment rate have probably stopped to rise. In January, this figure dropped to 9.7% from 10% in December.

Kind regards,

N. Grigoryeva, analyst