The dollar showed the maximum decline since 2009, as oil price increases

The slowdown in the business activity index in the service sector and 2014 have led to record collapse of the dollar since 2009, according to «gazety» with reference to Bloomberg.

«In the course of trading on Wednesday, February 3rd, the dollar weakened by 1.7% against major world currencies,» — said in the message.

Oil prices grow amid falling dollar

It is noted that traders, investors and analysts were frightened of the data on business activity in the service sector, which is a «thermometer» of the state of the U.S. economy as a whole.

After the dollar’s sharp decline was recorded and state bonds of the USA for 10 years, which fell to the lowest level since the beginning of the year.

Nevertheless, traders are clearly not willing to speak about change of direction in the American economy and are waiting for the report on unemployment, due out February 5.

According to experts interviewed by the Agency, the U.S. economy in January created 200 thousand jobs, and if the actual data is above this value, investors again believe in the dollar.

Oil prices grow amid falling dollar

The world prices for oil at the auctions on Thursday grow, supported by dollar weakened on Wednesday due to the statement of the head of the Federal reserve Bank of new York William Dudley on possible further actions of the Federal reserve system in respect of increased interest rates in the country, reports «Prime» with reference to AFP.

As of 07:39 the price of April futures on North sea petroleum mix of mark Brent has grown on 0,47% — to 35,20 dollars per barrel and the price of March futures for WTI — by 0.64%, to 32.50 dollars per barrel.

The optimism of investors, which led to the growth of the world prices for oil on Thursday, occurred on the background of statements by William Dudley. The head of the new York fed said that financial conditions in recent time have considerably hindered and the prospects of a weakening global economy can be taken into consideration at the next meeting of the Federal reserve system of the USA in March.

Words Dudley has forced markets to once again question the rate increase the basic interest rates in the US. Some analysts believe that the regulator will raise the rate in 2016 only twice instead of four previously predicted. Some bidders believe that the Federal reserve will not begin to raise rates in the current year due to unstable economic conditions.

«We see the rally in the oil market, a boost which gave an account of dynamics of dollar», — said the Agency Reuters, Director of futures trading at Mizuho Securities USA Robert Jager (Robert Yawger).

Note that the number of analysts continue to argue that oil prices will go down because of a significant reduction in reserves is not expected and the market is awaiting the arrival of Iranian oil in the coming months.

The dollar showed the maximum decline since 2009, as oil price increases 04.02.2016

Февраль 4th, 2016 by
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