International money transfer service

Traders that expected a rise of the USD this week got surprised in a bad way after all the negative economic data lowered American dollar’s rapidly to a bottom never-seen before. The index of Reuters fell to a rate that is a record low for the last 15 years. The only chance for USD to regain some of its positions against EUR is the greenback weakness, but the fact is clear – Euro had a raise that has no duplicate in the last two years in terms of percentage/time. It was noticed the raise was with about 500 p., and this rally took place in only two days – Tuesday and Wednesday. The record all-time high is known to be a rate of 1.59 for the EUR/USD, and all the eyes are on the pair, with the even more amazing expectation, that the EUR will not only beat its record but can reach levels of 1.5950 to 1.60.

Shortage in the United States economy

Money transfer experts and financial analyzers are becoming more and more convinced that there will be a recession in the USA, which by the way can already be predicted by people that do not deal professionally with economical forecasts. By definition, a recession occurs if the economy in certain country has to shrink for six straight months. But the retail sales rate and vendor data are not helping US getting out of it, so it is almost 100% sure there will be such. Anyway there is an event nervously expected in late April (30.04.08) when the Fed is predicted to apply a rate cut to 2% or to cut with a half point. But a rate cut is surely to happen.
And this week all eyes are on the economic events coming among which US ISM manufacturing on Tue and Payrolls of US non-farm in the end of the working week.