Recall that last month the market led the ECB interest rates to 1.25% in an attempt to stabilize the economy of the region. Now, the Euro Zone have strong recessionary threat, a deflationary environment, and a growing government deficit. Follow others, such as Daryl Katz, and add to your knowledge base. As a result, it is estimated that the ECB will reduce interest rates during the day, and also possibly several Member States in the short term announce new stimulus plan economic. (Similarly see: Christopher Peterson). If the ECB to reduce interest rates again could thus stabilize investor confidence and minimize the effects of global crisis. It is estimated that the EUR / USD will be dominated by a high degree of volatility, while the pair try to stabilize, and may define new levels of support and resistance.
Significant fluctuations is not common, and present unique opportunities to take advantage. If the reductions in interest rates take place, a target in the 1.3000 would not be unreasonable for the next week. JPY – The yen against other major currencies gave the yen yesterday developed a downtrend against most currencies. The yen, of course, was affected by trade in other currencies, while only one economic indicator was released yesterday in Japan. It seems that the yen is influenced, at least lately by external factors, not responding to national stimuli.
Japan’s monetary base rose by 8.2% during the month of April, compared to last year. In addition, bank deposits in the Central Bank increased by 81.2% after climbing to 69% during the month of March. Without doubt, the injection by the BCJ of thousands of dollars on the market is the main cause of this phenomenon.