The dollar plunged Wu Xiaoling shocks Forex commentary flames

With the United States economy concern deepens, the dollar-euro exchange rate has fallen from last Friday 19-month low against the dollar exchange rate has dropped to £ 18 months minimum.

GBP/USD exchange rate by 0.9%, to $ 1.9333 cumulative increases in a week 2.1%.

Euro overcomes previously $ 1.2980 high point during the year, up from $ 1.3109 up high.

New York foreign exchange market of shares on Friday, the EUR/USD, compared to the previous 1.3090 weipan 1.2% cumulative increases in a week 2.1%.

People's Bank of China (Peoples Bank of China), Deputy Governor Wu Xiaoling on Friday published an academic report putting pressure on the dollar. Wu Xiaoling, said in the report as the main reserve currency dollar continues to decline, increased depreciation of East reserve assets.

China's foreign reserves in excess of $ 1 trillion, ranking first in the world. While central banks may be huge amounts of foreign exchange reserves, from the dollar to other monetary assets, this has become a foreign exchange market a controversial topic.

Wu Xiaoling remarks led to the replacement reserve currency, primarily the euro – a buy of madness.

$ 1.30 euro breakthrough, triggered the traders in this level preset automatic polishing disc stop loss orders, the dollar fell to April 2005, the lowest level since.

One of the reasons the euro is strong, strong economic data in Europe and the United States weaker indicators is in sharp contrast.

Market in think the Fed (US Federal Reserve) in the 2007 relaxation of monetary policy, interest rate futures contracts show that traders expect the ECB (European Central Bank) at the end of the interest rate will be increased to 3.5%.

The interest rate again early next year is expected in the market, but the euro rose may reduce the interest rate.

The European Central Bank President Jean-Claude • Trichet (Jean-Claude Trichet) and Board Member Miguel • Angel • Finland Desmond • Ordonez (Miguel Angel Fernandez Ordonez) last week indicated that inflation risks remain.

But the European Parliament (European Parliament) in charge of economic and Monetary Committee pervanche • Beires (Pervenche Beres) indicated that if the European Central Bank on euro higher than the $ 1.30 raising interest rates, when it will damage the economy in the European region.

Her last Friday said: "the European economy is not a good message. ”