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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Rate dynamics and recommendations on EUR-USD an GBP-USD.
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07:07 05/25/2004
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Rate dynamics and recommendations on EUR-USD an GBP-USD.
The exchange rates of the European currencies keep growing on the Bank of England and ECB refinancing rate hike expectations. ECB rate hike expectations got stronger after CPI increases in the EU: Germany’s North Rhine-Wesphalia CPI for May made up +0.2% per month, +1.9% per year (the previous value equaled +0.3% per month, +1.4% per year). Germany’s Hesse CPI for May made up +0.2% per month, +1.9% per year (the previous value equaled +0.2% per month, +1.5% per year). Germany’s Saxony CPI for May made up +0.2% per month, +1.9% per year (the previous value equaled +0.2% per month, +1.5% per year).
The dollar is still under the pressure due to oil market situation.
Oil prices - the key problem for the world growth – dropped 1 percent down on Monday thanks to news that Saudi Arabia was ready to increase oil shipments. Meanwhile, at their meeting in New York, finance ministers of G7 countries appealed to OPEK to raise quotas for oil extraction. In their final statement, they made no comments concerning exchange rates, fully concentrating on record-high prices for raw material. Still, the oil market situation is critical for the U.S., as the oil cartel was not at all enthusiastic about Saudi Arabia initiative. Analysts forecast further price hike and that is why the dollar will remain under the pressure.
Recommendations: on GBP – keep the long-term long; keep stop that was shifted to fixed profit at 1,782.
Recommendations: on GBP – keep the long-term long; keep stop that was shifted to fixed profit at 1,782.
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