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Ireland Downgrade affects only a few Euro

According to some analysts, the divergence of European monetary policy of the Federal Reserve of the Central Bank is what is the engine of the disparity between the US Dollar and the Euro currency. Appreciation of the Euro against the dollar appears evidence of this theory, with the common currency hovering close to a maximum of 15 months against the Dollar today Asian trade.

As reported at 2: 46 (JST) in Tokyo, the Euro is trade against the greenback at $1.4472, edging back 0.1% of the late Thursday trading in New York, but in two fingers of the Ridge still of $1.4521 hit earlier in the week. Most of the actors in the market think that difficulty rising above $1.45, especially given the problems of debt in the euro area and with a credit ratings of the Irish be downgraded earlier today will face to the Euro.

Recent rhetoric of several leaders of the Federal Reserve has increased speculative investor political monetary loose ultra of the Central Bank is likely to remain as such for a prolonged period. Collectively, the position of the Fed is that inflation - and subsequent hikes in the price of basic products - remain transitory and manageable by the current policy.

The European Central Bank, on the other hand, continues to closely monitor inflationary pressures and recognizes that it is ready to go again with additional interest rate increases if the situation warrants.
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