Last week, a conversation on the Forex market was that the dollar is falling because of the upcoming U.S. quantitative easing, and hysteria on this issue, largely heated, representatives of the Fed reached a peak early in October, notes the analyst of the investment department VTB24 Aleksei Mikheev. Now, after Friday's comments by James Bullard, all according to the expert, suggests that mitigation is already incorporated in the price of the dollar and won back market, and players tend to buy on the rumor and sell on fact.
Some commentators recalled that just three months ago, the foreign exchange market set at naught the euro, but now in nothing puts a dollar. Mentioned by the experts and the problems that can confront the European economy in the coming months in connection with measures to reduce budget deficits and the reluctance of the ECB to conduct monetary policy easing. "The IMF forecast, published on October 6, suggests that the U.S. economy will grow by 2.6% this year and 2.3% next vs. 1,7% and 1,5% in Europe, respectively. Eurogroup Chairman Jean-Claude Juncker said Oct. 8 that "the euro is too strong today." Probably, some change the mood in the market plus the psychological level of 1.4 were finally able to stop the upward trend in euro / dollar. "
Tuesday, October 12, the euro / dollar continued its decline to the level of 1.387. Most likely in the next few days the pair correction will continue, as the euro has grown very rapidly, and now the speculators are long-time record long positions. Resumption of improving the single currency is likely to begin until late in the week.
