Euro back in buoyant, Investors cautious in U.S.-Dollar

The recovering economy in the euro-area is regaining confidence among investors, which emerges in the rising value of the euro. Against the U.S. dollar investors act cautiously before the tomorrow's numbers to the U.S. jobless claims and the Fed-Meeting in the next week.

EUR / USD exceeds the mark at 1.3300

After the euro-area's 17 countries have left the recession in the last quarter, slowly turns back the confidence of investors and the rate of the euro may increase markedly. However, the growth in the euro zone continues to be treated with some caution, since seem to initiate new problems in various countries, which could affect the whole euro-area.

In Italy, the dispute over ex-Prime Minister Silvio Berlusconi and his conviction could expand in a tangible government crisis. The first consequences the third largest economy in the euro-area already being felt by higher interest rates on government bonds. The interest rate for one-year bonds today rose from 1.054 percent to 1.34 percent. Demands for a loosening of the deficit targets are from Portugal loud again, suggesting close to new problems in portuguese national budget.

In France too negative news concerning the state budget. The french government has lowered its economic forecast for next year from 1.2 percent to 0.9 percent, and with the reduction of public debt France is less advanced than was planned. Instead of the planned budget deficit this year of 3.7 percent of gross domestic product this will amount to 4.1 percent. Also in 2014 had the goal of 2.9 percent to 3.6 percent to be corrected, and will thus determined to be 0.6 percent higher than the upper limit of 3.0 percent in the euro-area.

Another reason for the increase of the Euro-rate is the negotiating control over chemical weapons in Syria. Because the acute danger of an armed conflict is resolved, at least temporarily, investors tend again to take higher risk assets in their protfolio. If the negotiations over the controls in Syria do not provide positive results, the price of the euro could re-enter a downward trend.

Against the USD, the EUR could again exceed the mark to 1.3300, and the pair is currently showing an increase of 0.32% at 1.3309. The euro is rising against the AUD currently at 0.20% with a rate of 1.4277.

The euro fell today against the GBP after in the UK published figures for the labor market were better than expected. The pair EUR/GBP fell currently by 0.25% at 0.8412. Against the JPY the EUR declines currently 0.16% to 132.94.

Investors unsure against the U.S.-Dollar

The rate of the U.S. dollar can feel the uncertainty of investors regarding the expected tomorrow at 08:30 h figures on joblesst claims and ahead of the Fed meeting on 17 and 18 September.

The forecasts see for jobless claims only a slight increase of 7K, but after the figures for the last week, which were significantly worse than the forecasts, investor confidence is at least weakened.

Ahead of the Fed meeting in the next week, the increased uncertainty grows about how to proceed with the program for the purchase of bonds. Last month, it was speculated that the sum of 85 billion dollars per month currently could be reduced by 20 billion. Now the speculations says 10 billion and should be published economic data before the meeting worse than expected, the speculation will not contain a specific sum anymore.

The USD has suffered from some of its most-traded counterparts losses today. The GBP/USD rising 0.58% to currently at 1.5822, and the pair AUD/USD rises to 0.17% currently at 0.9328. The JPY gains against the USD currently 0.53% at a rate of 99.83.

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The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.