Analysis of the Currency August 12, 2011

EUR / USD



For the day today in relation to this cross currencies might consider opening a new long position if the price of the exchange ratio should break upward 1.4275, with the first goal at a height of 1.4290 and 1.4300 share for the second goal. Should the price rather than decreasing the share of 1.4130, then we could open a short position with the first goal at a height of 1.4120 and 1.4110 second goal.



EUR / GBP



For today's session we might consider opening a location where the purchase value of the exchange ratio of 0.8780 should break upward, staring as the first objective the achievement of quota and 0.8810 as the second objective, the share of 0.8830. If the price of this exchange ratio would fall below the value of 0.8720, then we could open a short position by setting a first target 0.8710 and 0.8700 as the second goal.



USD / JPY



For the trading day today we open a position in the purchase if the value of the exchange ratio would exceed the rise in the share of 77.05, setting the first target value of 77.15 and the second objective value of 77.30. If the price of this exchange ratio should break the downward part 76.50, we could open a downward position by placing first goal as a share of 76.40 and 76.20 second objective part.



GBP / USD



In today's session we could open a new long position if the value of the exchange ratio should break upward the value of 1.6245, with our first goal at a height of 1.6260 and 1.6280 share for the second goal. If the price of this exchange ratio would rather break the downward the share of 1.6195, then we could open a position in sales as our first goal by setting the share of 1.6180 and as our second objective, the share of 1.6160.

Analysis of the Currency August 10, 2011

EUR / USD



For today's the day we might consider opening a new long position if the price were to break the rising share of 1.4410, with the primary objective of reaching an altitude of 1.4430 as the second goal and the achievement of 1.4450 share. If the price of this exchange ratio would have to overcome the downward the share of 1.4205, then we could open a new short position with the first goal at a height of 1.4180 and 1.4160 share for the second goal.



EUR / GBP



For today's session for this exchange ratio could open a long position if the price were to break upward 0.8850 share, setting a first target share and 0.8870 share of 0.8890 as the second goal. If the price of this exchange ratio exceeds 0.8750 share down, then we could open a short position as the first goal setting and how to share 0.8730 0.8710 share of the second goal.



USD / JPY



For today's the day we might consider opening a new long position if the price exceeds the exchange ratio up 77.20 share, with the first goal at a height of 77.40 and 77.60 seconds at an altitude goal. If the price exceeds this cross down 76.50 fee, we could open a short position with the first goal and second goal share 76.30 76.10 fee.



GBP / USD



The pound is gaining in the beginning of this week, for this meeting as we might think of opening a long position if the price were to break upward the value of 1.6380, setting a first target share and 1.6400 share of 1.6420 as the second goal. Should the price instead of breaking the support level at 1.6180 share, then we could open a new short position with the first target 1.6170 and 1.6160 second goal.

Downgrade of the U.S., what does it mean for the country? Part 2

After the USA downgraded by Standard & Poor's, there have been many comments that have come also from outside. China, for example, has wasted no time. The official spokesman of the government, Xinhau, said that since they are large economies, the United States and the European Union exert an enormous influence on the world and have a great responsibility in the eyes of the world economy. Faced with a series of debt crises they need to reflect on their modes of economic and social development and to adopt concrete measures to help solve the problem of imbalance in the global economy.



Many say, however, that there are good reasons to question the methods that were used by S & P to evaluate the sovereign credit. In the same way you bring into strong question the methods used in particular with which the United States were evaluated.



Now the U.S. government should be and decide what to do. Obama said that despite everything is still a country to be triple A, even though it is no longer written on paper. But as it is, the loss of AAA status highlights the failure of American policy. Here, then, that the work of the leadership of the country must now focus for maintaining the global position.



Some, however, the downgrade will not affect that much, at least from a financial point of view, the United States, which remain the strongest country in the absolute and the center of the world economy, is that with two three "A ". The issue that is political questions of themselves, or to understand and correct the behavior of American politicians, who failed to reach agreement quickly on this issue and it will be called, in the future, to take other important and very fast, which can not react the same way.

Downgrade of the U.S., what does it mean for the country?

What does it mean for a country to have an AA rating? The answer to this question depends on that to which you are concerned. From an economic perspective, if you are concerned that this rating ruin the economic situation of a country, you can rest easy for now. Traders and economists generally agree that the impact on U.S. government borrowing rates will be manageable. The main issues, namely an increase in borrowing costs for the United States, the posting of Global Treasury, the decline in the stock market, all are little affected by the downgrade.



This is not a reason to celebrate. Standard & Poor's has made this move for two main reasons. First, the situation that has arisen in discussions about the U.S. government debt, pursued by politicians in a way that many Americans called "comedy" was so surprising that S & P has lost faith in Washington in ability to make tough decisions quickly on spending and taxes.



Secondly, there are several things that make you think they think that S & P does not believe that tax cuts will be sufficient.



If you are concerned about the global position of the United States, the country's prestige as a world leader, in this case you should feel quite worried. This downgrade is mainly a vote of no confidence in the American political system. Weakens the country's ability to influence their allies and trading partners, and damages efforts to prove the superiority of democracy and capitalism on a global level.



This is a profoundly serious. The center of American politics is collapsing, so the ability to address the serious structural and economic problems is one thing that now must prove he can do.

USD / CHF maintains daily earnings and is approaching the highs of the day

The Swiss Franc is losing ground against the dollar on Wednesday after recording on Tuesday one of the largest hikes since 2009. The USD / CHF is relatively stable, moving with volatility levels below those seen in previous days.



In the European morning climbed to 0.7325, but was not sustained and fell back to find support at 0.7180 area. From there the pair has been rising slowly and is currently trading at around 0.7300, consolidating and gain 240 pips away from historic lows.



Earlier, the Swiss central bank announced further measures to inject liquidity in Swiss francs in order to slow the appreciation of the currency.

Dollar Rises and Brazil Real depreciate

The Brazilian currency demonstrated a biggest drop against the US dollar this year today, as the government introduced a new tax on FX derivatives investments, and the dollar jumped up against the other major currencies.



During the day the Brazil real demonstrated a loss of about 2 percent (before returning to current levels), which is the biggest single-day decrease for this currency in more than 12 months. The Brazil authorities will now charge 1 percent tax on some derivatives operations on the foreign exchange market, which supposedly will curb the demand for the local currency, cooling down its extraordinary fast appreciation rally.



Another factor that forced the real down against the US currency was the gain of the latter against the other major currencies today. It followed some vague news about John Boehner‘s debt-relief plan gaining a positive review among Republicans in US Congress. Nonetheless, the situation remains far from its solution point with the US debt ceiling.



USD/BRL rose from 1.5395 to 1.5580 as of 18:20 GMT; it was at its daily maximum at 1.5710 earlier today.



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