Thursday, April 29, 2010

Euro Improved Slightly as ECB, IMF Meets

Yesterday Euro recovered slightly against USD after the highest ever fall.

Markets are expecting some positive news from Jean-Claude Trichet, the President, European Central Bank & Dominique Strauss-Kahn the Managing Director of International Monetary Fund as they would address German Parliament today.
However, the investors are still in favor of USD & Yen due to prevailing uncertainty hanging over the aid. As per unconfirmed news the International Monetary Fund is considering to raise the amount of aid to EUR 15 billion from the previously declared amount of EUR 10 billion.

Greek Government bonds were downgraded in terms of credit ratings in S & P putting a downward pressure on DOW because of upsurge of selling signals having regard to rising risk concerns. The deteriorating political conditions & increasing economic problems is the main reason why the credit rating was reduced. It is expected that there is a possibility of further downgrade in S & P due to rising doubts about Greece Government’s ability to implement the economic reforms.

Nikkei dropped by 2.5%, S&P dropped by around 2.3% while DOW was down by 1.9%

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