11, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Dollar fell and the Dow jumped 140 points, as fears about Syria are disappearing.

Stocks ended Monday with the growth, as fears about Syrian crisis are disappearing - at least at the present time. The market was being traded higher all day after Secretary of State John Kerry’s comments, when a diplomatic alternative for military strikes against Syria are become possible. Dow added nearly 140 points. S & P 500 and the Nasdaq - each about 1%. These indices went up from 15% to 23% for the year. U.S. stocks resumed their rise last week - despite a weaker-than-expected employment report on Friday. Hiring continued in August, but at a slower pace, which may signal that the Fed will not change the bond-buying program at its meeting the next week. The Fed has repeatedly said it will not begin narrowing until it sees a noticeable improvement in the labor market.

European markets closed mixed, while Asian markets closed with a decent advantage.

Japanese stocks hit one-month high on Monday, on the background of the fact that Tokyo has won the competition to host the Olympic Games and stronger-than-expected economic data gave investors a double dose of good news.

The dollar remains weak due to lower yields of 2-year US Treasuries and the yen remains weak with the publication in Japan of strong GDP data for the second quarter. Aussie and kiwi continue to be in demand after the quite good data on Chinese exports.

Most market participants continued to anticipate a reduction in the volume of QE3 at the next meeting of the FOMC, but predictions of its magnitude decreased considerably in recent days.