|
 |
Forex · News · Forex ForecastsNEWS / Forex Forecasts |
|
|
|
|
|
|
|
Greenspan has turned the market back…Rate dynamics and recommendations on EUR-USD and GBP-USD.
|
|
07:25 06/16/2004
|
|
Greenspan has turned the market back…Rate dynamics and recommendations on EUR-USD and GBP-USD.
Alan Greenspan’s words provoked boisterous stock exchange rise on the both sides of the ocean. FTSE and Dow-Jones indexes opened with rising gap, which resulted in negative reaction of the exchange market. Yesterday, FRS chairman said inflationary risks had been balanced for the nearest perspective. Thus, investors think now that interest rates will be raised very carefully.
Business inventories and the announcement made by the U.S. Department of Trade made FRS to look at the situation from another point. Business inventories in the U.S. in April made up +0.5% (previous value equaled +0.7%). NY Fed Empire State manufacturing index for June made up 30.2 (previous value equaled 30.2). Today, the U.S. Department of Trade said foreign investors purchased American assets for the sum of 76.2 billion dollars in April (previous value equaled 80.7 billion dollars). It had been noted that the given sum was enough for reimbursing the deficit of payments balance in the U.S. Business sentiments’ rise on the background of reducing wholesale inventories is another argument in favor of taking careful steps by FRS, as in this case production rise and increase in demand counter balance inflationary and deflationary risks.
Pessimistic sentiments on the dollar are influenced by data on increasing trade balance. Let us remind that, according to reports, trade balance rose $1,76 billion compared to April.
Recommendations: from technical point of view, price on EUR approached significant level of resistance at 1,2185. We recommend keeping long-term short, arranging stop at 1,2205.
Recommendations: from technical point of view, price on EUR approached significant level of resistance at 1,2185. We recommend keeping long-term short, arranging stop at 1,2205.
The forecast was created by trans1.
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
