Royalmaxbrokers: France "goes left"

The Royalmaxbrokers analysts believe that fears about the European debt crisis eased somewhat on Friday, April 20 after it became known that the finance ministers and central bank heads of the G20 and emerging economies said they were ready to increase the IMF's resources by $ 430 billion. That it is less than $ 600 billion, which was requested by the director-manager of the fund Christine Lagarde, the news was perceived as a kind of breakthrough. EUR / USD on the positive wave reached levels around 1.3230, but today it declined slightly in the Asian session, once again having gone below the resistance of 1.3200, not against the backdrop of the presidential elections in France. According to the results of the first round, incumbent President Nicolas Sarkozy is still behind his "left" rival Francois Hollande by 2-3% of the vote. The second round of elections, which takes place on May 6, will decide whether Sarkozy will remain in the presidential seat for a second term. The left, led by Holland, is in favor of revising some agreements on fiscal policy, which can cause disagreement in the EU, especially with Germany.

The GBP / USD pair added 0.4% on Friday morning, reaching 1.6120. The Japanese yen is again in demand as a defensive asset against the background of the elections held in France - the USD / JPY quotation fell to 81.40.

European stock indices closed the Friday session from 0.4% to 1.2%, their American "colleagues" added from 0.1% to 0.5%, while the "high-tech" Nasdaq Composite fell by 0.24% to the level of 3000.45.

The preliminary production index of China's PMI from HSBC, published today, signaled that production in the Middle Kingdom may have continued to decline for the 6th month in a row. The index was higher than March's 48.3 and was 49.1, which is still below the key level of 50 points. Royalmaxbrokers notes that the slowdown in economic growth and the decline in production in the world's second largest economy puts pressure on the authorities in the person of Chinese Prime Minister Wen Jiabao, adding grounds for further stimulating economic activity. Asian stock indexes end today their trading sessions in the red against the background of Chinese data and the results of the first round of elections in France, despite the positive impact of the IMF.

Published in the morning , the producer price index of Australia once again confirmed in terms of the situation in the economy of this country: prices in the manufacturing sector grew by only 1.4% in annual terms in March, compared with a growth of 2.9% in March and a forecast of 2, 2%. In monthly terms, they even decreased by 0.3%, although the expected growth of 0.4%. AUD / USD has already reacted with a decrease from 1,0360 to 1,0330 - 1,0340. You can hardly doubt that tomorrow data on consumer prices will show a similar dynamics, which will give the Reserve Bank of Australia at a meeting in May the opportunity to continue with a quiet conscience to reduce rates.

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