The exchange rate of the euro against the dollar, has decided against the upward trend and the EUR / USD shoulder-head-shoulder formation . Thus it has been a trend reversal in the course of Euro price below the $ 1.36 mark slipped. The negative development of the European single currency has benefited from a fundamental perspective by the omission of the acting Bundesbank President Axel Weber, on the top job at the European Central Bank (ECB).
Weber was the most likely candidate to succeed the reigning French ECB President Jean Claude Trichet. He is regarded as a so-called interest rate hawk, which would continue the tight monetary policy of the German Bundesbank to the European Central Bank. Critics argue that Weber agiere directly and miss the necessary diplomatic skills to the ECB Executive chairs leave.
A noticeable improvement in the U.S. labor market underpinned the appreciation of the dollar exchange rate. Thus, the initial applications for unemployment fell to 383 000 419 000 using. Analysts had expected a level in the order of 411 000 initial applications. The unemployment assistance requests in the United States are not as deep as since July 2008.
break for €
It appears that the euro exchange rate development begrudge currently a breather. Such was the price of € 1.2874 U.S. dollars climbed to $ 1.3860 from the 10th January 2011 and the 2nd February 2011. This was the Euro can enhance by almost 10 cents, and learned an appreciation of +7.66 percent. The European Central Bank (ECB) fixed the official benchmark rate on Thursday afternoon at $ 1.3604.
€ The price is replaced by current and headwinds due to the reduced likelihood of an early interest rate hike by the European Central Bank (ECB). Although inflation in the euro area rose 2.4 percent in January 2011, ECB President Trichet dampened the expectations of an interest rate rise. Sun expect the central bankers that inflation will stabilize in the coming months under two percent. An interest rate increase of 1.00 to 1.25 per cent is therefore, in the fall of 2011 on the agenda.
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