Forex analytics of LiteForex of 25.10.2010: EUR is growing again; the currencies are decided not to devalue

On Monday morning in the currency market (forex) the EUR / USD pair is growing after the G20 decision not to use schemes of currency devaluation in order to maintain good levels of exports.

By 9.15 MSK EUR costs 1.4034 against the Friday’s market close level of 1.3928.

According to the final declaration of the G20 countries after the summit held on October 22-23 in South Korea the members of the G20 agreed not to use the schemes of the devaluation of their currencies in order to maintain the levels of their own exports. Moreover the developed countries should try to reduce excessive levels of volatility as well as to eliminate the chaos in the exchange rates movement.

Timothy Geithner, U.S. Treasury Secretary, has said in South Korea that the decisions made by the G20 will reduce the pressure on a number of developing countries which are now facing the problem of growth of their currencies in spite of all measures that are being taken.

Today it will be a fairly quiet day in terms of the macro statistics publication. The speech of Fed chairman Bernanke is scheduled for the afternoon - the very fact of his speech is likely to reduce activity in the exchange markets but it is unlikely that the monetary politician will report something radically new.

Most likely the EUR / USD pair will bid in the corridor of 1.3900-1.4080 on Monday.