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Cooper Company Management Closer Look on Forex Market

Uncertainty has remained the predominant feature of the foreign exchange markets
over the past month.
Cooper Company Management provide skilled advice and expert assistance on the pu
rchase and sale of companies. Our seller-side clients are scattered throughout t
he United States. They share a desire to make the most of their M&A project or o
pportunity.
The sovereign debt crisis in Europe has clearly not been resolved; and there has
been further evidence of the conflicting views of the central bankers about the
most appropriate measures to correct the current problems, with the Fed primari
ly interested in maintaining the momentum in the US economy, and the European Ce
ntral Bank and the Bank of England more anxious to tighten fiscal policy to redu
ce the size of outstanding fiscal deficits. This general uncertainty produced a
further fall in the dollar in the early part of the month, and ahead of the rece
nt meeting of the Fed’s Open Market Committee, in the expectation that there would
a further easing of monetary policy; and then a subsequent recovery after polic
y was left basically unchanged, to leave the dollar slightly higher over the mon
th.
The euro has weakened because of renewed fears about debt defaults; sterling has
moved slightly higher as the markets have continued to react favourably to the
proposed measures to reduce the UK huge fiscal deficit; and there has been a con
tinuing rally in the yen because of its enhanced “safe haven” status. But the moveme
nts in the markets have been relatively small, as both traders and investors hav
e awaited guidance about future prospects.
The euro remains under pressures because of the threat of debt defaults, and a p
ossible break-up of the single currency system; sterling has been helped by the
early actions of the new coalition government, but there are doubts about whethe
r it will survive, and whether it can implement the proposed austerity measures
even if it does survive; the strength of the yen is clearly unwelcome to the Jap
anese authorities, and has increased the risk that the Bank of Japan will interv
ene in the markets to try to reverse the trend; and China has provoked considera
ble criticism, especially in the US, by its latest actions to depress the value
of the renmimbi. In this situation, although forecasts are extremely difficult,
we still believe that the dollar will “muddle through”, and that this will hold the
currency system together. In the statement; after the latest meeting of the Fed’s
Open Market Committee. The bank downgraded its view of economic prospects, indic
ating that “the pace of recovery in output and employment has slowed in recent mon
ths”, and was likely to be “more modest” than anticipated in the near-term.
It would therefore “continue to monitor the economic outlook and financial develop
ments, and will employ its policy tools as necessary to promote economic recover
y with price stability”.
But at the meeting it made no major policy changes, and only agreed to begin rei
nvesting the proceeds from maturing mortgage-backed and agency securities that i
t had previously acquired into Treasury securities to ensure that there was no t
ightening of monetary policy. But it is clear that its main priority in maintain
ing the momentum in the economy, and therefore further stimulatory measures are
likely if the economic situation continues to deteriorate.
And the same priority exists in the conduct of fiscal policy Congress has shown
some reluctance to sanction new spending programmes requested by President Obama
; but it has recently voted to inject an additional $26 billion into the economy
, transferring funds to cash-strapped states to avoid further jobs cuts in the p
ublic sector, and despite the massive size of the existing fiscal deficit. Its p
riorities are therefore also clear.
Cooper Company Management New York, USA manage a confidential, discreet process
aimed at optimizing both the terms and structure to best meet client objectives.
We are people you can confide in. Know that in Cooper Company Management you hav
e an alliance with people you can trust and believe in, and we know how to keep
a secret. We understand your hopes, fears and the need to get the most for your
time and money. Our business is serving you in a confidential and professional m
anner.
We have all the knowledge, education, experience and toughness to get the deal d
one and get you every penny you deserve.

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