Euro at five months high against the dollar

Currency analysis- The euro powered ahead fuelled by optimism in eurozone debt markets and by a significantly weaker dollar .As the Eurozone govts debt auctions continued last week euro outperformed strongly with the sale of 4 and 10 year bonds in Portugal. Even if the sale did not rise as expected, senti-
ments toward eurozone periphery continued well. The euro hit a five months high of $1.3411 as investors
considered a likelihood of and timing of  first round of quantitative easing in the US.It was up 1% at 1.3396.
Following the weaking of dollar in recent sessions,it weakened by 0.3% to $1.5678  against pound and
0.6% to Y84.55 against the Yen. However the currency dollar strong against canadina dollar by 0.3% to
C1.0297 and the Australian dollar was flat at $0.9555.
The gain registered by euro against the dollar reveresed after two days due to concern about euro zone
banking sector. Valentin Marinov of Citibank pointed out that liquidity needs have grown of late May.
put pressure on Euro.Market analysis suggested that euro's recent rise against the dollar might further to
go. Data analysts further go to the fact that speculators were shifted to long position in the euro first time
from Dec-2009. The euro after hitting high of $1.3506 against dollar slashed to $1.3477 (down by 0.1%)
The euro also fell by 0.1% against Japanese Yen(Y113.49)and lost 0.3% to pound 0.8502.
The Swiss frank eased to 0.1% to Sfr 0. 09842against the dollar. This retreat came following swiss SNB's
comment that Swiss economy could see a slowdown.The Swiss National Bank  forsees a deflationary
pressure in the coming year against that the euro is in the process of bottoming out against the swiss franc.

The recent price rise of food grains-an analysis

The recent food crisis of 2007-08 and a following hike in the price of essential food crops affected countries of Asia and Africa.This was the highest in thirty years.It increased wheat price to an unprecedented level
that time.That food shortage occured due to bad food crops in countries like Australia,Canada and other parts of Europe.
Almost reminiscent of that event, there is a mild price increase happened for wheat price recently.It came upto $8 a bushek last week. But analysts does not see a chance of food crisis and a persistent  rise in price
like that happended three years ago as world assumes a better position in terms of food shortage.Because of
US farmers has had enough stock of wheat(30m tons) and inventories of rice,corn and other commodities
are also at healthy label.Many observers don't see a possiblity of a price rise due to various factors at present.
Oil price less and less energy price can cause manure price cheaper.So farmers can increase food production.
the world's food grain stocks were at about 528m tonnes at much safe level compared to a situation
of 2007-08.
Experts opined that Govts might worsen the problem by imposing ban on exports and importers buy
more amount of food crops like the same happended 3 years back.
This rise in price of food grains came agaiist the backdrop of severe drought occured in Russia,Ukrain
and kazakhstan.
Three countries are world's top ten wheat exporters and key suppliers to countries in Middle East and Africa.
However,wheat price increased by 50% during the last two month's, even if food crisis is not severe
and it cannot be overruled. Analysts and traders observe a drop in production of wheat in Russia.
Also accompanied by, Kazakhstan and Ukrain may also produce less

car makers make buyont prospects in Europe

European equities make rapid advancements in the gone week.This can make signalling device to US earnings. The FTSE Eurofirst -300 gained 1.9% to 1,045.47 its sixth consecutive advance as the index nearer to its mid-june high.German carmaker BMW jumped 8.3% to euro 42.13 after it released profit fore-
cast because of improved business conditions.Daimler climbed 5.4% to euro 42.81 while rival Volkswagen gained 5.2% to euro 77after JP morgan raised its price budget on the stock. Renault added 4.2% to euro 35.28 while Peugot rose to 5.3% to euro 24.37.Xetra Dax of Germany rose 1.9% to 6,191.13 as the inf-
luential Zew survey of German investment professional showed an increase in positive sentiment in its current
conditions index to 14.6points.After Zew data industrials rose-Man rose 3.6% to 74.95 euro Thyssenkurup
gained 3.5% to a 3 week high of 22.26pound. In sweden the OMX index soared 3% to 1061.10 after one
of the country's biggest bank -SEB beat profit forecast in the second quarter rising 4.9% to skr 48./75 .
Nordea Bank rose 3.8% to skr 72.50 while sweed bank added 4.4% to skr 82.25.Greece's Athens general
index surged 2.6% to 1,567.4 after the public management agency sold 1.63 billion euro of treasuries.
Sector bell wether ,Nation Bank of Greece added 4% to euro 10.24 .
In the property,Ireland's ISE index gained 2.2% to 2,963.06 as banking stocks rose.Allied Irish bank  added
3.4% to euro 0.94 while Bank of Ireland rose to euro 0.76