During the first day of the trading week the demand for the shelter-currencies grew, which supported the American dollar. The political instability in Iran also provoked this growth. The World Bank announcement, which was published on Monday, stated that the recession would be probably much deeper than it has been expected before, which rendered support to the US dollar. And according to the new forecast the decrease of the world GDP would amount to 2,9% instead of the previous prognosis of 1,7%. At the same time the market participants were expecting the results of the next FRS meeting. The Euro zone fundamental news, which were released on Monday, did not manage to support the euro currencies.  And the EUR/USD pair established a session minimum in the range of $1,3830.

The oil rate decreased, and the precious metals demonstrated negative dynamics as well.

On Tuesday the market participants were oriented to the high-risk currencies, therefore, the euro increased against the US dollar and the EUR/USD pair demonstrated its maximum at the level of $1.4106. Due to the next FRS meeting expectations and possible withholding of the principal rate increase, the American dollar had a negative dynamics against its competitors. The Richmond Federal manufacturing index, which was published on Tuesday, turned out to be higher compared to the forecast and the previous month. And the existing home sales level increased in comparison to the previous month, but still turned out to be lower than the experts’ forecasts.

 

On Wednesday according to the expectations the FRS Committee concluded to leave the principal rate unchanged at the level of 0.25%. This fact supported the temporary consolidation of the American dollar competitors. Among the US fundamental news, we should mention the volume of durable goods orders, which turned out to be higher, compared to the forecast. But at the same time the US new home sales showed a lower level, than the previous month’s volume. The EUR/USD pair demonstrated its maximums at the level of $1.4135, and the minimums – at the level of $1.3887. And the  GBP/USD pair grew to the $1.6600 mark, but then decreased till the level of $1.6365.

On the same day after the release of the announcements regarding the Swiss National bank intervention, the Swiss frank decreased against its competitors.

On Wednesday the US crude oil inventories volume was published, which showed a decrease. Due to that the oil price grew and reached  the price of $69 per barrel, but then again dropped to the level of $68.60.

According to the FRS meeting results, it has been noted that there were new signs of US economic stabilization and that the economic recession was slowing down.

The Euro zone fundamental news, that were published on Thursday, had a negative influence on the euro currency. The euro demonstrated a temporary decrease against the US dollar during the European session. In addition, according to the released information, the International Monetary Fund called on for determined measures aimed to improve the Ireland financial sector due to the losses of the National Bank of Ireland for the year 2009.

The yen rate dropped against its major competitors due to the increased demand for the high risk currencies, and the USD/JPY pair set its trading session maximums at the level of Y96.56.
The gold and the silver prices demonstrated positive dynamics.

By the end of the trading week the American dollar was questioned again as a world reserve currency. These statements were received from the National bank of China. As a result, all major dollar competitors closed the week with an increase.

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