Central Bank
If the ECB reduced interest rates again could this way stabilize the confidence of investors, and minimize the effects of the global crisis.It is estimated that the EUR/USD pair will be dominated by a high volatility level, while the pair will attempt to stabilize, and can that new levels of support and resistance are defined. Significant fluctuations is not something common, and they present unique opportunities to be able to take advantages. If interest rates cuts are carried out, an objective in the 1.3000 would not be unreasonable for next week. JPY the yen yields against the major currencies yesterday the yen developed a downtrend against most currencies. The yen, was undoubtedly affected by trade in other currencies, while only an economic indicator was unveiled yesterday in Japan. Apparently the yen is influenced, at least lately by outside factors, not responding to national stimuli.Japan’s monetary base rose 8.2% during the month of April, compared to last year.
Furthermore bank deposits at the Central Bank increased a 81.2% after climbing to 69 percent during the month of March. Without a doubt, the injection by the BcJ of thousands of dollars on the market constitutes the main cause of this phenomenon. It will be interesting to analyze how the Japanese data will interact with the fluctuations of the stock market during the rest of the week, and all this, in correlation with the performance of the yen. Petroleum crude oil recorded highs of 6 months crude oil, after trading above $56 barrel, was not affected significantly, and for the first time since November reaches such a zone. Surprised, benefiting the crude oil, the U.S. inventory data, given that they fell, and also drop in layoffs in the private sector during the month of April together boosted optimism for an economic recovery with greater speed than expected.Crude reached $56 in comparison to the minimum that had been recorded during the month of January in the area of $34, phenomenon that was stimulated by the advance of the stock market, and above all, by the optimism generated among many analysts and concluded that the world economy could begin to recover earlier than expected.Also the fall of the dollar ended up benefiting the crude.