However, the forex rates of the Euro managed to gain back part of the lost ground during the Asian trade despite the blow from severe selloff in the previous meetings and despite the currency outlook which remained uncertain as the market does not seem comfortable with the debt crisis of the Eurozone.

Fitch was the first rating agency which downgraded Ireland on Thursday but their impact was not as strong as it could be because the market was expecting this decision. This time, however, the market is focused on China, which may announce interest rate increase at any time, as investors hope. The Chinese decision to announce financial figures on trading odd hours of Saturday instead of Monday strengthened the rumors.

The movement of the GBP/USD exchange rate has shown weakness in the rise and the next move is expected downwards to the first support level at 1.5660. The foreign exchange currency pair might even break this level and move towards the 1.5619 level slightly above the main support level. However, any move above the 1.5840 will undo the move.

China’s currency has revaluated less than 1% compared to the U.S. dollar since June 19th when China Central Bank stated by a press release that will allow market forces to play a greater role in the value of the national currency.

Last year’s increase in exports – which made China the largest exporter in the world as the country pushed Germany to the second spot – reached 43.9% in June. The export growth last month was greater than the initial financial analysts’ estimations. The trade surplus is at the highest level since January 2009. China’s trade surplus with the U.S. increased to 93 billion dollars in the first five months of 2010, according to the U.S. Department of Commerce. Chinese Customs estimate the trade surplus to 59.4 billion dollars, 18% higher than last year.

The global economy has been hit by the biggest lightning it has ever experienced since the Second World War and the top exporters saw their record sales drop by 20% to 30% in 2009 which reflected that the global GDP, according to the World Bank declined by 2.2%. The decline was mainly driven by the deep recession which slipped major developed economies, with result a shrinking GDP by 3% in the USA and 5% and 6% in Japan and Germany respectively.

With the U.S. and major European economies suffering; Asia’s exports registered a sharp decline last year in result of the chained reaction. Chinese exports fell more than 20% in early 2009 and actually started to recover in December. At a worldwide level export revenues fell last year by 16% according to the Oxford Analytica, bases upon figures published by Forbes.

Nevrtheless during all this chaos China proved to be bullet proof as its GDP grew by about 7% in the last quarter of 2008, by 7.9% in the second quarter of 2009 and by 9.1% in the third quarter of 2009 not to mention that it still presents double-digit growth, which seems to satisfy the markets.

Oxford Analytica analysts however, stress that the accelerated pace of China should be a concern rather than a relief. The 585 billion dollars spent in the economy by the Chinese government has not only translated into GDP growth, but also to increased lending by 30% in 2009 which might be worrying as a substantial strengthening of the country’s exports, which would allow the government to withdraw all emergency measures.

Therefore China does not support the worldwide economy but on the contrary it relies its future on the global recovery and its well being cannot be predicted accurately as in reality it relies heavily upon the growth and health of both the US and the major economies of Europe.