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Fundamental Analysis, October 11, 2011
German Chancellor Angela Merkel, announced on Thursday that he would propose to establish a tax on financial transactions at the next summit of Heads of State and Government of G-20, which will take place on 3rd and 4th November in Cannes ( France). For his part, President of the Eurogroup, Jean-Claude Juncker, said he believes that the report on Greece of the "troika" comprising the European Commission, the ECB and the IMF will probably be ready on October 24, giving birth green to the next tranche of aid for some 8,000 million euros.
But across the Atlantic, the references to the U.S. labor market that met in the last three days last week were encouraging, private employment grew in September, declined requests for unemployment benefits weekly and last month were created 103,000 new jobs, which is the best result since last abri, l and the unemployment rate remained at 9.1%. Then, after falling risk aversion, the euro ended the week marking the highest figure of 1.35. Although the figure is clearly positive for the dollar, but the market is not moving by fundamentals in the strict sense and interpretation that gives a good figure, regardless of the country to which he belongs, is the relaxation tension and thus get rid of dollars long positions taken at the time, to take refuge from the uncertainties about a new recession and banking crisis and European debt.
It is important to consider these arguments do not despair for not understanding the fall of the dollar with a good thing for the economy.
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