US$ down again against surging Eurozone

The euro has risen today to a record against the Japanese yen (Close London 159.95500) and another 2 year high against the US$ (CloseLondon 1.34335).

Traders expect the US$ to reach 1.35 and assume that the forthcoming ECB Governing Council is due to meet this week, on Thursday will put up rates from 3.75% to 4.0% is the only thing stopping a runaway.

The Australian $ was trading @ 82.31 U.S. cents a 19 yera high and is expected to move up to 82.40 - rise of 5.5% in the last month.

The Australian dollar reached 98.09 yen, the highest since May 1997 dealers are expecting it to reach 100 yen over the next six months suported by a increase in the carry trade wityh the opening of the new Financial year.

Australia will nearly double its military deployment in Afghanistan to about 1,000 soldiers by the middle of next year, the country's prime minister, John Howard, announced yesterday, a move supported by the Labour opposition. Special forces are expected in the dangerous Oruzgan province, he added, to beef up the area's security and disrupt Taliban command and supply routes.

Only 1 Australian soldier has been killed in Afghanistan , this year 151 foreign armed forces have died there. 6 Candians were killed when their vehicle was hit by an IED over the weekend.

UPDATE 11/4/07

China's trade surplus almost doubled in the first quarter, widening to US$46.4. billion from $23.3 billion in the first quarter of 2006. China's trade surplus swelled to a record US$177.5 billion last year, helping to fuel a 10.7 % annual growth rate.