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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Rate dynamics and recommendations on EUR-USD and GBP-USD.
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07:07 05/17/2004
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Rate dynamics and recommendations on EUR-USD and GBP-USD.
Number of negative news on the U.S. economy weakened positions of the dollar against the Euro and pound sterling. Last month, consumer prices in the U.S. rose for the fifth straight month, however their growth was the weakest during the year, reflecting price rise for hotel accommodation, medical treatment and higher education. On Friday, the Bureau of labor statistics of the U.S> Department of Labor published data on CPI, which is regarded as the main indicator of the inflationary pressure in the country. CPI rose 0.2% in April after 0.5% gain in March. Core CPI, which does not include unstable prices for food and energy, rose 0.3% in April compared to 0.4% gain in March. During the year, the core CPI rose 1,8%, which is the greatest growth since January 2003. Weak growth of inflation made investors doubt FRS rate hike and that caused some outflow of the capital from the dollar.
Weak Michigan sentiment index added no optimism. According to the preliminary data, Michigan sentiment index stayed unchanged compared to the previous month: 94,2 in May against 94,2 in April.
The Euro stabilized in the tight range 1,1750-1,1950. Trend showed the signs of weakness according to the formed downtrend structure and 5 wave. Correction towards 1,22 and 1,232 levels is possible.
As for the pound, the situation is similar here – quotations stabilized within currency corridor of 1,7530-1,77 levels.
Recommendations: the breaking out of the top level of the range on EUR, as well as on GBP can become the right moment for opening longs. The two strategy targets are clearly marked on EUR: 1,22 and 1,232. For GBP, those strategy targets are: 1,78 and 1,8. Keep in mind earlier given recommendations.
Recommendations: the breaking out of the top level of the range on EUR, as well as on GBP can become the right moment for opening longs. The two strategy targets are clearly marked on EUR: 1,22 and 1,232. For GBP, those strategy targets are: 1,78 and 1,8. Keep in mind earlier given recommendations.
The forecast was created by trans1.
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