Collection of benefits: the dollar and the euro rests breathe

Washington - June 11, 2008 - A chorus of voices to recover the dollar led by the chairman of the U.S. Federal Reserve, Ben Bernanke. Clearly, the verbal intervention is the new practice of central banks. But nothing can today with collecting profits in the currency market after the dollar accumulate on Monday and Tuesday its biggest increase in two days since 2005. Follow here the euro / dollar exchange.

The dollar appreciated 2% 9 and June 10. Not surprisingly, since the initial statements by Bernanke to show their concern about inflation, have joined the Henry Paulson (Treasury secretary), Richard Fisher (president of the Dallas Fed) and George W. Bush to push the dollar.

Fisher's Statements has been more blunt: "we want the message is clear, we will not tolerate inflation expectations continue to grow nor a weak dollar, retroalimenta the vicious circle that we all know already."

But today he played making profits and the euro rises around 0.6% in a session in which it has moved from a high of 1.5562 dollars and a minimum of 1.5455. The Community currency at its junction in front of the U.S. currency, "has scored two consecutive sails daily bassists very similar to the two candles upside of late last week," analysts stress X-Trade Brokers.

"The lateral movement with continued high volatility and seems to be limiting the range of fluctuation between 1.5362 and 1.5820. So far the pair has every aspect of rebound if we look at the graph of four hours", explained.

For Shaun Osborne, currency strategist for TD Securities in Toronto, "the euro has fallen to a very strong", so that at the moment cree "requires a stretch to consolidate levels, and this will give you a breather."

For today the appointment of greatest interest will be the publication of the Fed Beige book in the U.S..

Source: El Economista