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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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The trend has been outlined…Rate dynamics and recommendations on EUR-USD and GBP-USD.
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07:24 03/25/2004
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The trend has been outlined…Rate dynamics and recommendations on EUR-USD and GBP-USD.
Market seems to be leaving the state of equilibrium. Sales of Central Banks of Japan and Switzerland have activated EUR-USD and GBP-USD players.
On EUR – the lower border of price triangle - consolidation pattern – has been broken out.
Breaking the triangle down by long black candlestick on the price chart is the first sign of formation of market sentiments vector direction. Bear sentiments prevail.
Attempts of Bank of Japan to strengthen the dollar are balanced by expecting positive corporate news on Japanese economy, which shows growth, thus rendering support to national currency. Approaching the level of 105,0 will be the key moment for the yen. Massive currency intervention can take its start from the given level.
Strengthening of the dollar that started at the beginning of the European session continued at the beginning of American one, on the background of positive news on the US economy.
On Wednesday, U.S. Department of Commerce published data that testifies that the volume of durable goods orders steeply increased last month, orders for computers, cars and aircrafts were the leading ones. The volume of orders for durable goods, life cycle of which is not less than three years, rose 2,5% in February and made up $183,8 billion, whereas revised January level of orders fell 2,7% and not 1,8%, as earlier said. Skipping orders for transport equipment, the level of orders fell 0,3%, whereas it rose 0,6% in January.
A whole number of companies, including Advanced Micro Devices Inc. - producer of microprocessors and Smurfit-Stone Container Corp. - supplier of packing materials, declare orders increase. According to their opinion, the lowest cost of borrowed funds in the last 40 years contributes to orders growth on the background of impetuous rates of economic growth. “Rise of orders for durable goods can support and strengthern other indicators that testify upswing of industry, - said the head economist of Bank of America Capital Management Lynn Reaser prior to report release, - inventories accumulation, increase in capital investments and in the volume of export contribute to jump in production”. Economists, questioned by Bloomberg News, assumed that the volume of orders for durable goods would rise 1,5% in February.
Durable goods orders made up +2,5% in the US in February (forecasted as +2,0%, previous value was revised from –2,3% to –2,7%). Index turned out to be positive for the fourth time in the last six months. New home sales in the US in February made up 1163000, forecasted as 1110000, previous value was revised from 1106000 to 1099000.
An explosive device was found in France on the railroad going from Paris to Basel. This is one of the facts why European currency dropped, as investors fear militant activities in Europe.
Recommendations: market has outlined the first sign of an advancing trend. One should wit for supportive signals and stay out of the market.
Recommendations: market has outlined the first sign of an advancing trend. One should wit for supportive signals and stay out of the market.
The forecast was created by trans1.
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