The continuing sharp decline in the yen against the euro and the U.S. dollar amid reports of an earlier retirement of the current Prime Minister Shirakawa also supporting the growth tendency of investors to the risky game. Desire means the depreciation of the national currency to overcome deflation has already boosted the euro, but in the long term can be a negative phenomenon for the European economy, which still has not overcome all their problems and therefore a high rate of the euro in the long term can only hurt the European economy.
Meanwhile, investors await tomorrow's ECB meeting, which did not seem to become concerned about the sharp rise in the euro, but in spite of these assumptions, perhaps tomorrow, ECB President Draghi M. and finally will break the silence and would speak on this. It is likely he may follow the previously spoken words of European officials who have displayed a high rate of dissatisfaction with the euro, especially against the yen and the U.S. dollar.
As for the overall picture of the market there are mixed trading. Australian dollar continues to fall due to the weak economy. Yen sharply falls against the U.S. dollar and the euro. The euro is almost froze in anticipation of tomorrow's decision on monetary policy the ECB.
Events today:
Moscow time
15.00 Germany factory orders in December n / a; 0,8% m / m, -1.8% m / m
19.00 Canada Business Index Ivey PMI January n / a; 53,2; 52,8
19.30 U.S. Crude Oil Stocks for the week 27.01-02.02 n / a; n / a; 5,9 million barrels.
Sergei Kostenko
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