Analysis

	Currency Market Summary as of March 20th, 2008.

The reduction of the rates by the USA FRB by 0.75% had a reverse effect. The dollar, which was rapidly falling, has started growing. A correction from 1.59 to 1. 5540 took place. Upon reaching the important mark of 1.55, the next goals will be 1.5350 and 1.5280. A sharp turn for the dollar happened in other currency pairs as well. The Canadian dollar and the Swiss franc have given up the par value, being traded at 1.0245 and 1.0060 respectively. The same sharp growth happened against the yen – from 95.74 to 100.50. The British pound has reached 2.0400 and is being traded at 1.9750. Prior to a long weekend in the USA the investors got rid of resource agreements, which resulted in a crash in the gold, silver and oil market, and invested in the US dollar. The “resource” currencies, the Canadian and Australian dollars, suffered. Such a massive and probably agreed transfer of assets from one instrument to another has finally dotted all “i"s. It has become clear that a huge placement of debt securities with the falling dollar was a sign that the dollar decline happened mechanically as such large borrowings without a guarantee of at least temporary strengthening are not possible. As the placement was completed, the dollar rate started turning. It’s hard to say how positive this process is going to be, but in the near future (keeping in mind the ongoing credit crisis), sharp corrections from the important levels for the pound of 1.9360 and for the Euro 1.5280 are expected.