The attention of the market is still on monetary central banks actions to consolidate their economies in the rise of inflation and the woes of debt threatening large economies.
Yesterday, the Fed kept interest rates at its range low between 0.0% and 0.25% and said will continue the program for the purchase of 600 billion bond to boost growth.
But the main highlight was on Bernanke comments following the decision of rates that raised speculation that we might see currency wars because of conflicts of interest between economies.
Bernanke is committed to maintaining lose monetary policy for a moment that pushes the dollar below the lowest level since July 2008, giving an additional force to the euro that reached 16 months versus the greenback.
Dovish Bernanke announcement suggest more depreciation of the dollar, while earlier this week, we saw Trichet highlighting the fact the strength of the dollar is preferable for the United States.
Markets became accustomed to see Trichet giving remarks on the dollar strong as the euro rises to undesirable levels which European threat of exports which loses its attraction that it becomes expensive to their American counterparts.
With the stable Fed rate and ECB showing the trend of additional restrictions, the EUR/USD pair should further increase. Thus, the ECB may reconsider in may interest rates that they will be certainly more power to the euro.
Exports have been the main pillar of European growth last year and it is necessary to stimulate the this year to help the economy to recover in the escalating debt woes that threaten the region.
Many analysts expect that the ECB would not increase interest rates next month and may delay in June, where the Fed completed the purchase of 600 billion bond program.
This week, the ECB will publish the estimation of the ICC in April that will determine the rate of inflation in the 17-nation region and which can provide clues to the action of the Bank in May.
The problem is that with the depreciation of the dollar, products are gaining more momentum; for example pink gold again high today and oil, which is in large part responsible for the acceleration of prices, worldwide will rise further, putting more pressure on decision makers to raise interest rates to lower inflation return to the target.
Later in the day, the eyes will be on data annualized GDP for the United States and the profits of the business.