|
 |
Forex · News · USMarketNEWS / USMarket |
|
|
|
|
|
|
|
Market sentiments are determining...Dynamics of rate and recommendations on EUR-USD and GBP-USD.
|
|
11:28 03/17/2004
|
|
Market sentiments are determining...Dynamics of rate and recommendations on EUR-USD and GBP-USD.
At present, there are threefactors that act against dollar. The fist one is geopolitical risks connected with activation of terrorist activities of Al-Kaida. The given factor always provokes running away from dollar. The second factor is the decision of FRS US to leave the rate of refinancing on the same level. Though, the given fact was forecasted by many analysts, there, actually, were the reasons for increasing the rate. They were: powerful growth of prduction, labor market indicators’ growth, which gradually pull to production growth and strengthen inflationary pressure on the economy. That, in its turn, must result in increase of credits’ cost, or in other words , in refinancing rate increase. The fact that the rate remained without a change, showed that monetry course, aimed at weakening the US national currency, stayed in power.
And the third factor is negative data on construction market. The given data indicated decrease in housing construction rates. On Tuesday, the US Ministry of trade declred that number of residentioal houses, construction of which were started last month, decreased, having thus indicated market decrease in the South and in the West of the US. Even if February rates of construction remain, number of houses, constructed this year, might exceed number of houses, constructed in 2003. in February, number of houses that were being constructed dropped on 4% compared to previous month and amde up 1,855 million units in annual estimation. January indicator, revised aside increase, made up 1,932 million units in annual estimation.
Technically, price on Euro still stays within currency corridor and price intrady triangle.
Recommendations: recomendations remain without a change: “technically, dollar price on Euro is in tight triangle inside of currency corridor 1,232-1,2. Two key levels determined themselves: they are 1,24 – the level of resistance and 1,214 – the level of support. Breaking pit these two levels will be a good signal for opening longs from 1,24 and shorts from 1,214”.
Recommendations: recomendations remain without a change: “technically, dollar price on Euro is in tight triangle inside of currency corridor 1,232-1,2. Two key levels determined themselves: they are 1,24 – the level of resistance and 1,214 – the level of support. Breaking pit these two levels will be a good signal for opening longs from 1,24 and shorts from 1,214”.
The forecast was created by trans1.
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
