As the Forex traders wait for today’s housing data release, EUR/USD reached its new historical maximum at 1.4778. With just a little trailing back it continues to hover around 1.4770 level ready to strike again to probable 1.4800 level.
United Arab Emirates and Qatar may drop their currencies’ pegs to dollar without waiting for their GCC partners, Omar Bin Sulaiman the governor of the Dubai International Financial Centre said. Increased pressure from that falling dollar, wounded by the mortgage crisis in U.S., inflicts vulnerability on these Middle Eastern oil exporting countries.
Group of 20, which summit ended today in Cape Town, South Africa, has released its statement. To some surprise it didn’t contain any strong implications to China’s monetary policy, as some expected. Although E.U., Canada and U.S. officials were motivated to bring China to the faster decisions, which could lead to the yuan appreciation, it seems that they failed.
OPEC summit, which is to be held this weekend, could become a field of discussion of possible dollar abandonment as the official OPEC’s oil currency. Iran and Venezuela, concerned with the dollars continuous fall against other world currencies, are interested in changing oil pricing to other major currencies.
Mervyn King, Bank of England Governor, said during his press conference that he will use the Group of 20 meeting to convince China to speed up the yuan’s appreciation. G20 meeting will be held near Cape Town, South Africa, this weekend on November 17-18 and one of the prevailing topics would be China’s monetary policy.
Sultan bin Nasser al-Suwaidi, Central Bank Governor, said in Gwacheon, South Korea, today that U.A.E. will end the dirham’s peg to the U.S. dollar, if it will continue further to depreciate against euro. U.A.E. dirham’s peg to the dollar is almost 30 years old; it started in 1978 and will be probably stopped this or next year.
Federal Reserve Chairman Ben Bernanke spoke on Fed’s communications at Annual Monetary Conference today. In contrast to his predecessors that praised a secretive atmosphere of FOMC’s decisions, Bernanke said that transparency and more detailed information will help markets to understands monetary policy better. In this context he announced about a new communications strategy of the Federal Reserve.
Bank of Japan decided to leave its monetary unchanged on today’s meeting upon releasing its monthly statement on the Japanese economic development. BoJ also left no signs of possible interest rates hike in the near future, leaving carry traders with the opportunity to continue using yen as the selling currency.