Tuesday, September 7, the foreign exchange market witnessed many events. At the same time there has been two distinct trends. First and foremost it is worth noting the strong downward movement of the euro against the dollar. A recent stress tests that were conducted in Europe to determine the viability of large banks, have been seriously underestimated the volume of risky debt in the ownership of some financial institutions, according to one of the most influential U.S. newspapers. According to the Banking Association of Germany, the ten largest banks in the country will need additional infusion of 105 billion euros, to prevent the recurrence of the crisis, reports Reuters.
Of course, the sum of 105 billion euros is a symbolic compared with the trillions of dollars and euros that have been poured into the economies of developed countries. But the fact of fraud with the results of stress tests call into question the whole idea. It is worth noting that in the spring of this year, the results of stress testing of European banks have launched an aggressive downward trend for the euro.
On Wednesday morning, 8 September, the euro traded at around 1,271 dollars, and, apparently, until the players took a break. In the next few days may come information that is not only Germany had distorted information about the stress tests. Serious blow to the single European currency may be a need infusion of funds into the capital of the southern banks of the eurozone countries - Spain, Portugal, Greece and Italy. If this happens, then soon we will see the euro at around 1.19 dollars, or even lower.
The second significant event of the day was the meeting of the Bank of Japan, who with incredible tenacity refuses to take at least some action to limit the growth of the yen. On Tuesday there is a breakthrough line of support 84 yen / dollar. On Wednesday, one yen was worth U.S. $ 83,5 Thus, the Japanese currency is not much left to a historic high near 80 yen to the dollar.
