The US Dollar has strengthened its positions over the period of May 13-17 as the economies of its main rival currencies either continue to remain in recession or slow down at a lot higher pace than that of the US. In particular, the Eurozone continues to remain in recession for already the sixth quarter in a row. Besides that, the Bank of Japan has received support from the G7 countries regarding its planned quantitative easing program. With this background, the USDX index in the second half of the day on Friday has gained 0.9% in the week’s aftermath. Additional support for the American currency is being provided by statements of some US Federal Reserve representatives about the regulator considering the possibility of decreasing the quantitative easing program’s volumes as soon as the end of the summer.
The Eurozone’s GDP data for the first quarter of 2013 has again ended up in the negative, having constituted -0.2%. Germany was noted for insignificant growth by 0.1% which has helped it to avoid a technical definition of recession, yet the economic activity in France and Italy has decreased by 0.2% and 0.5% accordingly. The ECB is likely to additionally cut its interest rate in the near future, and the currency market’s participants include it in the price. The EURUSD pair has continued its downfall and reached the 1.2820 mark which is 1.4% lower than the previous week’s closure.