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 Forex Analysis
08

Monday FX View: G7 Ministers Fail to Inspire the Euro


Andrew Wilkinson submits:

The dollar and yen both continues to benefit from ongoing uncertainty over the perceived dangers to the growth outlook within the Eurozone. A weekend meeting of G7 ministers failed to deliver a stronger message than the European commission had delivered last week. Investors had been optimistic ahead of the weekend that a deeper resolution may have evolved from the meeting this weekend. Equity prices rose strongly in the final half hour of trading to deliver a positive close for an ugly week on Wall Street. Ahead of today’s session equity index futures had earlier pointed to a five-point gain for the S&P 500 only to see prospects for a positive start erode after GM joined the recall craze for its Vibe model. The reason – sticky accelerator pedals. The same problem faces investors pushing on the gas pedal when it comes to buying dollars. However, there doesn’t seem to be a reason in sight to expect a recall.


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