Joint Party Invitation Wording

against dollar further increased

put the forex market more and more speculators on an appreciation of the euro against the dollar. Thus, the positions of market participants scrambled with significant capital resources, such as hedge funds on the futures exchange (CME) on a yearly high. The Contracts in favor of the euro from speculative accounts increased to +51,308. In the previous week was the balance between EUR / USD purchase and sales contracts at +45,598, at beginning of the year 2011 -24 201.

€ The development is to the dollar in the last trading week EUR / USD 1.3732 risen to 1.3938. After the single currency a maximum sand at EUR / USD 1.4006 reached on Friday, there has been a pullback. The European Central Bank (ECB) fixed the official reference rate of EUR / USD 1.3957. This cost the dollar equivalent of € 0.7165.

Earlier, the ECB contributed significantly to the development of Euro Dollar for the first time in 2011 the brand of EUR / USD 1.4000 could overcome. So said central bank President Jean Claude Trichet that a rate hike at the next ECB meeting on 7 April 2011 would be possible. With a first rate hike of 1.00 percent to 1.25 percent expected before Easter 2011, the few analysts had expected.

inflation shock is

However, the increasing inflationary pressures in the euro area, the big problem child of the monetary authorities. In February 2011, consumer prices rose by 2.4 percent in the euro area compared to the same month last year. The inflation rates for January 2011 (+2.3 percent) and December 2010 (+2.2 percent) were also located above the ECB's target of two percent. This is price stability risk.

"If we have a shock and we have a shock, then it is our responsibility to prevent second-round effects due to high oil prices," Trichet said at a press conference after the central bank's meeting on 3 March 2011. As is expected in the United States prime rate increases in 2012, the Euro is currently very popular with speculators. The growing interest rate differential between euro zone and the U.S. is considered particularly important for the EUR / USD price action.