Dollar has serious intentions…Rate dynamics and recommendations on USD-CHF and USD-CAD. by OpenForex.com

Dollar has serious intentions…Rate dynamics and recommendations on USD-CHF and USD-CAD.

10:39 06/14/2004

Dollar has serious intentions…Rate dynamics and recommendations on USD-CHF and USD-CAD. The end of the week was marked by low activity on the Forex market due to funeral of the 40th president of the USA Ronald Reigan. All stock exchanges were closed in the U.S. on Friday. EUR/USD rate pressed down important support at 1,2050. USD/CHF rate had overcome viscous zone at 1,2560-80 and is in the key resistance area at 1,2650 – 1,2750 now. USD/CAD rate had also climbed higher than 1,3630-50 and stabilized near 1,3670. In a whole, long-term support is granted to the dollar by FRS rate hike expectations that got stronger after he recent statement made by FRS chairman Greenspan. Besides, last week the president of Cleveland’s Federal Reserve, Pinalto, stated that current rates are unreasonably low in the country. Saint Louis’s Federal Reserve president, Poole, said major interest rates might rise faster than earlier planned, if inflation rose at a high rate. We assume that in case there are no unpleasant surprises, American currency will continue rising and the earlier indicated targets will remain in power. Release of important economic indicators is planned for today. In case they come out weak, recent trend might be brought to slight correction. However, we still see the dollar growing. Let us remind that release is scheduled for 12:30 GMT: - retail sales in the U.S. in May (forecasted +1.0%, previous value was –0.5%); - retail sales in the U.S. in May, excluding cars (forecasted +0.4%, previous value was –0.1%); - trade balance in the U.S. in April (forecasted as –45.0 billion dollars, -46.0 billion dollar previously). Recommendations: we recommend keeping long positions that were opened on Thursday. However, it might be that on the background of today’s weak data, slight correction of dollar rate rise might occur. Recommendations: we recommend keeping long positions that were opened on Thursday. However, it might be that on the background of today’s weak data, slight correction of dollar rate rise might occur.

The forecast was created by trans1.