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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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08:30 05/24/2004
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Rate dynamics and recommendations on EUR-USD and GBP-USD.
Pound sterling was the main locomotive of movements at the currency market last week. National currency of Great Britain rose almost half percent high to the level of 2-week maximum and got over the losses suffered at the previous session. The rate of British currency is supported by market assurance that the Bank of England would raise the rate. The minutes of the meeting of the Bank of England Monetary Policy Committee show that the question of raising the rate 50 base points higher was discussed and that means that monetary policy tightening can be more aggressive than expected. Besides, April retail sales increase strengthened rate hike expectations. However, rising pullback of the dollar dominated on the market on Thursday and the rate of pound sterling dropped half a percent down. At the beginning of Friday session, dollar quotations began moving backwards. Today, the pound sterling looks very firm. It is supported by opinion that the refinancing rate would be raised in Britain. The given opinion got even stronger after the release of the minutes of the meeting. The pound occupies an advantageous position not only because of the overall trend of highly profitable currencies but also because the market is more aggressive about the rate changes perspective in Britain compared to that earlier counted in quotations. GBP-USD is $1.7850 (+0.4%) worth – maximal since May 10. Earlier in May, pound sterling marked itself on the level of five-month minimum. EUR/GBP stays on the same level of 0.6723 pounds. The rate remained stable even after the release of British data.
The main web of currency market intrigue is plotted around the oil market situation. OPEK can not control growing oil prices because of the matters cartel has no influence on. It was declared today by United Arabian Emirates minister of oil Obaid al-Nasseri. \\\" I do not think, that the control is in hands of OPEK. Too many factors influence the prices \\ \", - said he after the arrival to Amsterdam on negotiations between oil manufacturers and consumer-countries due Saturday. When answering the question, whether the oil quotas increase to 1,5 billion barrels per day would help, al-Nasseri answered: \\\" It can help \\ \".
OPEK ministers have earlier declared, that the final decision upon quotas growth will be made at the cartel meeting in Beirut on June, 3. Britain’s minister of Finance Gordon Brown has called OPEK member-countires to increase oil extraction quotas to bring down the prices for oil on the world market. The U.S. minister of power Spenser Abraham has also called oil manufacturers to reconsider recent reduction of quotas.
President of OPEK Purnomo Jusgiantoro had declared in his interview BBC that he did not like the present high prices as well, but oil-consumer countries could help with the decision of that problem by lowering fuel taxes. G-7 countries’ representatives will discuss the given question in Amsterdam during the weekend. Saudi Arabia and United Arabian Emirates support quotas rise.
In the meantime, Ali Rodniges, the head of Venezuela state oil concern, which isa part of OPEK, declared that the world oil market was already oversaturated and quotas increase would produce no effect. He attributed the present high oil prices to the account of market speculations and the situation in Iraq.
Recommendations: keep strategy positions on pound sterling, stop can shifted to fixed profit at 1,7820.
Ben Bernanke overturned the rate of the dollar…Rate dynamics and recommendations on USD-CHF and USD-CAD.
The forecast was created by trans1.
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