Dollar Sinks, EUR/USD Reaches 1.6011

Euro reached a new historical maximum against the U.S. dollar today after another European Central Bank official stated that the bank will be acting thoroughly in order to keep the consumer price inflation rate down.

According to Christian Noyer, the ECB is not going to ease the monetary policy because of the strong inflation in Eurozone. And while some European countries vote for a weaker euro (to support national exporters), ECB is standing strongly against any actions that will accelerate the CPI, which is above the current central bank’s target rate.

Many currency analysts expect euro to continue its bullish trend against the greenback as it’s now clear that the European interest rates are not going to be reduced in the near months. EUR/USD can reached 1.6500 in the next 3 to 6 months according to them.

Existing home sales in U.S. also helped dollar to fall against the euro — according to the report by the National Association of Realtors in March they fell from 5.03 million to 4.93 million (at annual rate).

EUR/USD went up from 1.5910 to 1.5996 today on Forex with the daily maximum at 1.6011- a new absolute record for this currency pair.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

CAD Down before Central Bank Meeting

The Canadian dollar was falling slightly yesterday and today against the other world currencies as the traders expected the interest rate decision of the Bank of Canada monetary policy meeting, which is scheduled for 22nd of April.

The total drop of the Canadian dollar (or so called Loonie) against the U.S. dollar this year is at 1.6% after a 17% gain last year. The drop increased this week as the Bank of Canada is expected to lower the key interest rate from 3.5% to 3.0% on its meeting today. The current interest rate in U.S. is 2.25%.

The market is expecting not only a 50 basis point cut in Canada, but also a statement that will support confidence in further cuts by the BoC.

The last interest rate cut was performed on March 4 — it was reduced from 4.0% to 3.5% and the statement signaled that the central bank has now entered a cutting cycle. The present consumer inflation rate in Canada is quite low, thus allowing more loose monetary policy.

USD/CAD rose from 1.0064 to 1.0072 today on Forex, while CAD/JPY pair declined from 102.59 to 102.37.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Dollar Decline May Slow but Will Continue

The U.S. dollar decline versus the European currency has slowed down recently as the investors relied on the intervention by the G7 to overcome the global currency imbalance and strengthen the dollar.

Although the finance ministers of the Group of Seven countries are concerned with the overapreciation of the euro against the U.S. dollar, the currency volatility is their primary concern. Elevated volatility is what brings the economies to the risk, according to their April 11 statement.

One of the main reasons for the European Central Bank and similarly thinking officials not to act against the euro appreciation lies in the role that the strong currency plays in fight with the inflation. Consumer prices in Eurozone grow fast and if the euro starts to fall against dollar, many commodities and hi-tech goods price will accelerate.

Even if the dollar will continue its drop, but will be doing it gradually against the euro, the central banks may abstain from taking any actions against such a behavior. But keeping down the volatility may include interventions by the European nations to support dollar and weaken euro.

Today EUR/USD started below its previous week’s close level on Forex — it opened at 1.5813 and grew to 1.5863 as of 8:58 GMT, but it’s still trading lower than Friday’s open level (1.5893).

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

The U.S. dollar decline versus the European currency has slowed down recently as the investors relied on the intervention by the G7 to overcome the global currency imbalance and strengthen the dollar.

Although the finance ministers of the Group of Seven countries are concerned with the overapreciation of the euro against the U.S. dollar, the currency volatility is their primary concern. Elevated volatility is what brings the economies to the risk, according to their April 11 statement.

One of the main reasons for the European Central Bank and similarly thinking officials not to act against the euro appreciation lies in the role that the strong currency plays in fight with the inflation. Consumer prices in Eurozone grow fast and if the euro starts to fall against dollar, many commodities and hi-tech goods price will accelerate.

Even if the dollar will continue its drop, but will be doing it gradually against the euro, the central banks may abstain from taking any actions against such a behavior. But keeping down the volatility may include interventions by the European nations to support dollar and weaken euro.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.