Market review for the week of 25.03.2013 – 29.03.2013

The US Dollar has resumed its growth versus the main rivals over the period of March 25-29. The USDX index, being its correlation to the basket of the six world’s main currencies, has gained 0.7% and reached its maximal value since August, 2012. The main driver of its movement was the continued weakening of the Euro, the specific gravity of which in the index constitutes 57.6%. The macroeconomic data from the US continues to remain positive, also positively impacting the American currency, which preserves a positive correlation with stock exchanges.

The Euro continues to remain under pressure as the resolution of the events in Cyprus proved not as optimistic as the traders anticipated and carries unpleasant signals for the investors. Besides that, the next turn of the political crisis in Italy provoked the profitability growth of this country’s government bonds, which also wakens the singles currency’s positions. In the week’s aftermath, it lost around 180 pips, or 1.4%.

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