Analysis

	World Financial Market for the week of November 26th – 30th, 2007.

Prior to a meeting of the OPEC countries crude oil price fell to 89 dollars per barrel. Furthermore, the reduction of tension in the situation with Iran increased the pressure on the prices. The quotas are not likely to be increased, but since this has already been taken into accounts in price formation, it is too early to expect a rate higher than 100 dollars per barrel.
It is quite probable that the current situation will remain till Thursday when the ECB and the Bank of England issue their decisions on the rates. The CEB is expected to leave the rate unchanged.  What will be undertaken by King’s establishment is a not clear, since there is a slight chance of a decrease. If no surprises occur, a return to the correction scenario may happen even before the issue of rates in the USA on December 11th.
The Bank of Canada has decreased the overnight rate from 0.25% to 4.25% and the accounting rate from 4.75% to 4.5%, which strengthened the US dollar against the Canadian dollar. The rate at night was traded lower than the par value but soon after these events it reached 1.0140. Over the recent two or three months this correlating currency pair remains extremely volatile.
The USA economy demonstrates a reduction of deficiencies, both commercial and budgetary, which was prompted by the dollar losing its cost during the entire year. This improvement only to a certain extent makes up for the negative effects of the mortgage crisis, the completion of which is always put off. Taking all that into account, it is hard to believe in the long-term strengthening of the dollar, though the technical correction has already started.