The White House has approved this possibility

The dollar was in great shape yesterday. It continued its advance against the euro, which has substantially plummeted and is exchanged below 1.31 dollar session, its level of early March 2007. It was end-of-session 1,3136 dollar, against 1,3303 the previous day.

The greenback benefited from the proposal of a second plan for economic revival of Ben Bernanke, the Chairman of the US Federal Reserve, speaking Monday before the House of representatives budget Committee. The White House has approved this possibility. The dollar benefits more widely from remittances, on the idea that the US economy can recover more quickly than other countries.

The concern about the consequences of the financial crisis on the real economy grew up in Europe. Operators questioned the extent and duration of a possible recession. Yesterday, Christian Noyer, Governor of the Bank of France, emphasized the possibility of a rebound in 2009. He also said to expect a gradual slowing of inflation.

While inflation concerns are much less vivid, operators expect more and more on a decline in rate of the European Central Bank (ECB), which contributes to penalize the European currency. They are now betting on more than 50 on a decline in a quarter of a point, based on futures contracts identified by the Agency Bloomberg.

It is the movement just to operate the Central Bank of the Canada. It has reduced its main rate a quarter of a point, while economists anticipated rather a gesture of half a point. The Bank, which lowered its growth forecasts, however suggested the possibility of new movements of relaxation, taking into account the economic context on the Canadian dollar.

Lowest Euribor

Concerns about the macroeconomic context were also very noticeable on the equity markets. Except the CAC 40 ( 0.78), which has benefited from specific measures for banks, the major European exchanges gave ground. A Wall Street, the Dow Jones lost 2.50 and the Nasdaq 4.14 at the close. While the week is loaded into quarterly publications of US companies, several results disappointed (read here). Investors fear a sharp decline of profits, consequence of the stock market slump. According to JRC Actions, taking into account the current recovery in Europe and multiple histories, market integrates a decline in results 2009 of the order of 35.

These fears have overshadowed the continuation of the improvement of the monetary market. Euribor 3 months yesterday continued its movement to relax, lowering below 5. It stood at 4.96, the lowest level since the bankruptcy of Lehman Brothers.

Governments and the monetary authorities have multiplied measures in recent weeks to reduce tensions. The ECB has again yesterday important refinancing operations, in dollars and euros. At the same time, the Fed announced the creation of a new credit facility to finance the redemption of certificates of deposit and tickets to cash monetary funds, to strengthen the liquidity of the financial system. "It is a new stage in the range of measures of the Fed." It is for the monetary funds which undergo significant redemptions. "There is probably no direct impact on the short end of this announcement, but she helped reassure the market," said Christian Parisot, Economist of Aurel.