On the background of strengthened Dollar a logical weakening of the Euro was observed (down on the EURUSD chart). The Pound (GBPUSD) fell less than the euro, due to the positive statements made by the British finance minister George Osborne. He raised its forecast for GDP growth of the country for this year from 2.4% to 2.7% and in 2015,from 2.2% to 2.3%. The Bank of England expects that this year British economy will grow much more, by 3.4%.
The Japanese Yen (up on the USDJPY chart) weakened according to our expectations. According to the Ministry of Finance of Japan, last week foreign investors sold Japanese stocks by 1.1 trillion yen. We believe that they are afraid of the reduction of corporate profits after increasing the sales tax on April 1st. In 2013 Nikkei 225 (NIKKEI) increased by 57%, and since the beginning of 2014 dropped by 12%. Quotes of the Gold (XAUUSD) fell to a three-week low amid positive the Fed statements regarding to good future of the U.S. economy and the stabilization of the political situation in Ukraine. Representatives of major Western banks believe that the Gold price can go into a long-term downtrend that will last as long as the U.S. government tapers assets and increases interest rates, i.e. till 2016. According to them, the base rate will rise to 1% from the current 0.25% by the end of next year. Price of the Soybean (Soyb) may drop, as it became known that China is going to resell 360 tons of Brazilian soybeans in the United States. In China demand for the Soybeans decreased because of the mass destruction of poultry due to the outbreak of avian influenza. Previously, for the same reason China refused to purchase 600 tons of the Soybeans from South America.
Yesterday U.S. stock indices (DJI, SP500, Nd100) fell for the first time in three days. Expected increasing of the rate may have a negative influence on the stock market. In our opinion, the growth of interest on loans can reduce the attractiveness of such large manufacturing companies like Boeing (S-BA). Besides, it also has a "short personal negative factor" as the aircrash in Malaysia.