|
 |
Forex · News · Forex ForecastsNEWS / Forex Forecasts |
|
|
|
|
|
|
|
Dollar got stronger again…Rate dynamics and recommendations on EUR-USD and GBP-USD
|
|
07:48 06/18/2004
|
|
Dollar got stronger again…Rate dynamics and recommendations on EUR-USD and GBP-USD
Market is disturbed by suppositions and forecasts on FRS interest rate target. The main intrigue is focused around the amount to which the rate target will be raised. So far, no one doubts that the rate will be raised, the question is how high. Ambiguous statement of FRS chairman Alan Greenspan, approved for the fifth term, made the market shake and threw the quotations to different sides. Yesterday, John Snow made a speech that resulted in a new wave of suppositions. When talking to journalists, the head of the U.S. Department of Commerce noted that high rates reflected high rate of economic expansion and that interest rate hike could slow down the pace of production and consumer growth, thus serving as protective shield from economy’s overheating. Compared to cautious statements made by FRS officials of higher rank, J.Snow said rate target might be raised 1% higher.
Optimistic fundamental releases on U.S. economy were in favor of American dollar. Philadelphia Fed index in the U.S. in June made up 28.9 (forecasted 26.0, previous value was 23.8). Despite insignificant growth, such index components, as new orders, employment rate and prices dropped compared to the previous month. Leading indicators in the U.S. in May made up +0.5% (forecasted +0.4%, previous value equaled +0.1%). Jobless claims in the U.S. in the week ended June 12 made up 336 000 (forecasted 330 000, previous value was revised from 352 000 to 351 000). Despite the fact that index came out higher than forecasted, it was rather low and was minimal this month.
Today, players’ attention will be fixed on balance of payments data for the first quarter in the U.S.
Recommendations: quotations reached significant levels of support at 1,1950 on EUR and at 1,825 on GBP. In a whole, the situation is in favor of the dollar. Stick to previous recommendations and keep shorts on the dollar.
Recommendations: quotations reached significant levels of support at 1,1950 on EUR and at 1,825 on GBP. In a whole, the situation is in favor of the dollar. Stick to previous recommendations and keep shorts on the dollar.
The forecast was created by trans1.
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
