Dollar extends gains against the major currencies
The U.S. Dollar extends gains in the European session Monday. After serious dollar weakening in May correction was unavoidable and after better-than-expected U.S. unemployment rate report the rebound does not seem especially unexpected. Dollar-strengthening was also supported by hard statement from a Fed officer, talking about possible interest rate lifting on leading quantitative easing money policy. Euro/dollar failed to climb up to the figure at 1.40, held around 1.3860. However after international bond-rating company S&P reporting about Irеland's credit rate lowering from AA+ to the level AA sterling resumed falling, touching the support level at 1.38/1.3790. The British pound comes into an additional pressure from political uncertainties over Prime Minister Gordon Brown's Labour Party which failed not only in inland elections, but also in elections of the European parliament.
Dollar/yen lightly falls after growth at the end of the previous week on the back of macroeconomic reports. Surplus from current operations in balance-sheet reduced April due to diminishing demand for Japan's products. Positive balance contracted by 54.5% in fiscal term to 630.5 bln. yen. Drastically reducing trade volume due to the global slowdown led to first in 13 years deficit in balance of current operations in Japan in January. Although the demand was stabilised, Japan's export volume continues to fall. At present the trade volume showed less than two thirds as compared to the level last year. Leading index Economy watchers survey continued to rise, totally fallowing the forecasts of Japanese authorities about economic recovery in the state.
