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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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We are waiting for unemployment rate data…Rate dynamics and recommendations on USD-CHF and USD-CAD.
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16:45 06/01/2004
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We are waiting for unemployment rate data…Rate dynamics and recommendations on USD-CHF and USD-CAD.
Two issues are becoming decisive for the world markets today: militant attacks in Saudi Arabia and indefinite political situation in Iraq arise panic on the oil exchanges and put serious pressure on the dollar. Steady downtrend on Swiss frank continued its movement with the beginning of the European session. Oil prices still stay on the record high levels. At London exchange, oil futures of Brend make broken out the psychological barrier of $38 per barrel. Rise in quotations of oil exchange produces a negative effect on production growth the powerful rise of which was recorded at the end of the last and the beginning of this year.
Another significant economic factor is unemployment rate data due at the end of this week. Investors and analysts expect the given release as an additional factor that would help them determine the terms of FRS rate hike. According to some estimations, the rate should be raised no later than the end of the second quarter of this year. Others say that FRS might postpone rate hike decision-making for a later period, in case unemployment rate shows increase in non-farm payrolls. Let us remind that the rate might be raised, if inflationary pressure, tied with workplaces reduction, grows stronger.
Canadian dollar is more sensitive to American dollar weakening on the world currency market than Swiss frank, which is due to positive data on Canadian economy that showed 2.4% gain in production in the first quarter. National currency growth was a result of hopes for preserving interest rate of the Bank of Canada on the same level, though prior to economic release, there was an opinion that the Bank of Canada would ease interest rates.
On the price charts, you can clearly see strengthening of Canadian dollar, thought it has already reached the significant level of support at 1,358-1,35. Swiss frank has overcome psychological level of support at 1,1265, which tells us about investors’ readiness to buy national currency of Switzerland. We should not forget that Swiss frank is traditionally considered “shelter” currency at the times of world situation tensions.
Recommendations: we recommend stay out of the market and wait for Friday economic news.
Recommendations: we recommend stay out of the market and wait for Friday economic news.
The forecast was created by trans1.
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