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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Dollar is on the rise…Rate dynamics and recommendations on EUR-USD and GBP-USD.
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09:15 06/10/2004
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Dollar is on the rise…Rate dynamics and recommendations on EUR-USD and GBP-USD.
One of the Dow theory bases “Market takes everything into account ” was confirmed yesterday at the beginning of the European session. Ascending trend on EUR showed its weakness at the beginning of the week after third dynamic wave, having shown the development of the fourth and the fifth, the most unpredictable one, waves of correction.
The dollar started strengthening after A. Greenspan’s speech made in London. Investors took the statements of the one of the most influential officials, as FRS readiness to take resolute measures on protecting the economy from inflationary threat. The first step in that direction will be raising FRS rate 50 base points higher at the end of July. Earlier, it was forecasted that FRS rate hike would make up 25 base points.
The dollar was also supported by news on American companies’ wholesale inventories’ reduction. 0,1% dip was recorded and that means that sales are getting more active. Secretary of Trade Department said yesterday that inventories reduced 0,1% in April compared to March. According to revised data, inventories rose 0,55 in March compared to the previous month. The given data was opposed the forecasts that had expected +0,5% gain in April. Inventories’ reduction stimulates the companies to keep demand high and to increase production, which, in its turn, makes the overall economic situation in the country better. Rise in sales was confirmed by inventories/ sales coefficient that reduced in April compared to the previous period.
Today is the last day of financial week in the U.S. Tomorrow, all stock markets will be closed due to Ronald Reigan’s funeral, the ex-president of the U.S. Currency market activity is likely to be minimal, as no economic news are expected tomorrow.
Recommendations: we recommend keeping shorts that were opened yesterday, placing near stop. The nearest target on EUR is 1,2010; strategy target is 1,1840.
On GBP – the closet target is 1,8185; strategy target is 1,7930.
Recommendations: we recommend keeping shorts that were opened yesterday, placing near stop. The nearest target on EUR is 1,2010; strategy target is 1,1840.
On GBP – the closet target is 1,8185; strategy target is 1,7930.
The forecast was created by trans1.
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