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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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No significant changes on Forex…Dynamics of rate and recommendations on EUR-USD and GBP-USD.
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08:29 03/22/2004
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No significant changes on Forex…Dynamics of rate and recommendations on EUR-USD and GBP-USD.
Political factor is now affecting European currencies too. Terrorist activities of extremists’ groupings greatly concern investors. According to Euronews, terrorist attack, conducted in Spanish capital, might provoke deterioration of market situation in Eurozone. Such opinion was expressed by the head economists of European Central Bank Otmar Issing. Officially, Board of Governors of ECB that gathered for the regular meeting a week after the tragedy does not share those fears. Jean-Cloude Trichet’s department does not exclude possible short-term psychological effect, which threat of terrorism might produce on consumer and investor sentiments. ECB confirmed that Eurozone economy had a good prospective of recovery. According to the forecasts, GDP growth will make up 1.1% in the first quarter of this year and growth rates will rise to 2% in the fourth one.
That is the reason why Central Bank did not think it necessary to reduce bank credit rates. European governments insist on taking that step in order to stop strengthening of the Euro. ECB does not agree to that, though it recognized that it has lost 477 million Euro in 2003 as a result of overestimation of common European currency.
Massive actions of Central Bank of Japan might be the reason of recent steep strengthening of the dollar that occurred in the last days of the previous week. Breaking-out of significant levels of support on USD/JPY pair and expectations of positive corporate economic news on the results of the last financial year, made BOJ use its favorite tactic of conducting currency interventions. Official explanation of such actions of BOJ is a fight against currency speculators.
From the technical point of view, no significant changes on EUR-USD occurred.
Quotations are within earlier mentioned currency corridor. Having made an attempt of breaking key level of 1,2330, the Euro went back to price triangle frames.
Recommendations: stay out of the market so far.
Recommendations: stay out of the market so far.
The forecast was created by trans1.
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