Decision On Syria Can Bring A Negative Impact On Stock Markets

Last week was full of macroeconomic statistical data, which has been bringing turbulence on the markets and we have witnessed quite different movements in the stock and currency markets of late. Despite the fact that trading session in the American stock market has been rather volatile, indexes finished almost on the levels they began. Dow Jones dropped for 0.10%% and reached 14922.50, Nasdaq added 0.03%% and closed the session on the level of 3660.01 and S&P500 increased for 0.01%% and closed the session on 1655.17.

The American Dollar strengthened last week due to key macroeconomic indicators, which were better than expectations, showing increased chances that FRS will begin the reduction of the program of quantitative easing following the results of the next meeting which will take place on September 17-18. The PMI indexes in the production and services sector were recorded at levels 55.7%% and 58.6%%, respectively. But, after the publication of the report on the labor market, where data for June and July were revised with a fall in the sum on 79 thousand, the American Dollar was under moderate pressure and started to lose in relation to major currencies.

The European currency has also been under quite strong pressure after the head of the European Central Bank, Mario Dragi, during a press conference, declared that the Management board discussed the possibility of an additional decrease of the interest rate. The month before, the European Central Bank gave reference points on monetary policy in which he noted that rates will remain low in "the foreseeable future". However, against improving macroeconomic statistics, participants of the market began to exclude the possibility of a further decrease, and the Euro became stronger. EUR/USD pair on Friday was traded on the level of 1.3160, losing following the results of a week 0.4%%. This morning, we can see EUR/USD traded on the level of 1.3172.

This week there are no expected important macroeconomic statistics capable to have essential impact on the moods of participants of the currency market. As for the near-term outlook, Syria still remains the center of attention. Obama's speech to the nation address is planned for Tuesday. On Wednesday congressmen are returning from vacation, and will, most probably, take a final decision on the Syrian matter.

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