Euro uses American problems in its favor - 22.7.2011

USD The euphoria caused by the local solution of the Greek problem, the announcement by the S & P of 50% probability of lowering in the U. S. Rating within the next three months, weakened the U. S. currency against the others. In addition, the data on unemployment benefits have confirmed the problem in the U. S. economy and investors were reminded of the possibility of launching QE3. The dollar index dropped to a significant level in the vicinity of 74. But it will not be easy to overcome it today most likely the participants would prefer to fix profits ahead of the weekend, in the absence of meaningful statistics. EUR The common European currency finished Thursday on a positive note, and continues being in claimed on the decrease positions. The foundation for strengthening the Euro on the surface was such: the European Union will provide $ 109 billion to Greece as the official assistance, the country will pay a lower rate on the loan, the amortization term is extended to 15-30 years. Total private sector participation will be 50 billion EUR until 2014. The expected EU decision could reverse the down trend tendency in intraday, formed after the disappointing statistics — the industrial PMI lowering in the Euro Zone to 50. 4 (as against 52 the previous one). Nevertheless, the downtrend in the EUR is not broken (against the USD at 1. 45) and the near future does not look serene. CHF The events in Europe, that caused growth in stock indices of PIGS countries, and decrease of the bond spreads in Italy and Spain, defused a few tensions and weakened the position of the CHF considered by investors as the shelter currency. The officials are beginning to show worries about the continuous CHF increase. We will see in the nearest future, if there are enough of these factors, to break the current trend.