Market review for the week of 6.05.2013 – 10.05.2013

The US Dollar has considerably strengthened its positions over the period of May 6-10 as it becomes more obvious that the world’s central banks continue weakening the monetary-credit policy. Serious steps in this direction have been taken by the ECB, Bank of Japan, and Reserve Bank of Australia. Further easing is anticipated from the Bank of England after Mark Carney becomes Head on July 1. With such a background, the USDX index, reflecting the American currency’s behavior versus the six main competitors, has gained 1.1% in the week’s aftermath.

The EURUSD pair has formed a downward trend and tested the 1.30 support after the European regulator slashed the interest rate and Mario Draghi during his Monday speech made it clear the regulator was ready to act further if need be. With the continuously worsening macroeconomic data from the region, the interest rate cut to 0.25% is perceived as an already finished matter. In the week’s aftermath, EURUSD lost 0.8%.

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