Analysis

	Currency Market Summary for the week of November 19th – 23rd, 2007.

The markets are waiting for the next rate reduction by the USA FRB but the players do not have absolute confidence that this is going to happen; therefore the carry trades underwent another reduction.  The yen cross rates fell following the dollar against the Japanese yen to 107.60. The Swiss franc strengthened considerably. The rate went below 1.10 and even to 1.09, which exceeds the highs of 1995. To speak about the possibility of the par value achieving in this currency pair is too early. More likely there is going to be a turn or at least a correction to 1.1155.
In the middle of week the data on the American housing market will be announced, which will define the rates dynamics. A paradoxic scenario, when the dollar begins to grow in spite of the poor economic data, is also possible.
Moreover, there appeared information that there is a buyer for the Northern Rock bank. The pound reached 2.0720 due to this news. But on the whole, the prospects for the pound increase are quite limited. The Bank of England is expected to reduce the rate. Apparently the early November high of 2.1160 was a turning point and the rate is far from repeating the same values.
The Canadian dollar is continuing to lose its positions but it hasn’t yet overcome the level of 0.99.
The turn can begin in the next weeks and prior to that the Euro can still temporarily overcome 1.50 and the pound test 2.0950. After that the purchases of the dollar for the whole stock range will begin.