In Forex continues to dominate the tendency to flee from the dollar. However, not all paths are free. After intervening in the foreign exchange market the Bank of Japan for the care of a conservative yen road is closed. The Japanese currency continues to remain in a narrow corridor 85,5-86 yen / dollar. And changes in this pair is not expected due to the fact that this week on Monday and Thursday markets in Japan will be closed, and on this background, participants exchange market will be extremely active.
For the players there is only one way - an escape into risky euro and pound. Also for the huge overhang of cheap liquidity, accumulated from the banks, the government of southern Europe is ready to pay handsomely. This led to the fact that the single currency broke the mark up 1.3 USD / EUR. On Monday, September 20 at 9:00 GMT the pair was trading around 1.307 marks. It is possible that during the first session of the week the European currency has yet to pick up weight.
The reason for the same flight of investors from the dollar is a difficult situation in the U.S. economy. Statistical indicators clearly show that the GDP growth slows down, the flywheel and the market does not want to run. In this case, the Fed on Sept. 21 plans to announce the adoption of new anti-crisis measures - in fact, enable the printing press, although the old portion of liquidity in the market are not yet absorbed and remained in the accounts of American banks. The same fate awaits the new money that will go from the controller.
Thus, left with no real tools to influence the market reserve drives himself into a dead end like the Japanese. In this deflationary scenario is unlikely: U.S. in the world so much that the U.S. economy will go towards stagflation. This fact and the players are afraid of speeding up its pace in alternative currencies.
