EUR/USD (a 4-hour chart)
The euro has grown against dollar on speculation that the European Central bank will not interest in a strong currency as it will slow down an economy restoration.
The European currency has grown in the comparison to the majority of 16 most traded currencies as balance of ECB was reduced on early credit repayments by banks of a euro zone. The euro grew in spite of the fact that the president of France François Holland has warned that the currency growth can cause to deep recession.
The euro/dollar pair has continued its growth even after the Minister of Finance of Luxembourg Luk Friden said that level of national currency did not apply to it and its stability fits an economic reality in a euro zone.
Balance ECB was reduced on the level of 159 100 000 000 ($215 100 000 000) to 2.77 trillion euro on the last week of the February. It is the lowest level since February of the previous year. Bans Crediting of ECB was reduced on 140 800 000 000 to 1.02 trillion.
Its balance decreases, while the Federal Reserve System and Bank of Japan expand their balances at the expense of the monetary stimulation. It pushes euro above, threatening to undermine the European export and an exit from a recession.
The European central bank has convinced members of the financial market that the situation with debt crisis is under control, and investors have returned again to euro.
For the weeks they pushed European currency to the further growth being inspired by the steady depreciation of loan for debitor-countries.
Threat of a default on a sovereign debt probably passed. Nevertheless, still there is a set of the risks.
The economics that are not in a good condition, now are on a way from bad to the worst.