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Forex · News · USMarketNEWS / USMarket |
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Market is expecting important decisions….Rate dynamics and recommendations on EUR-USD and GBP-USD.
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08:56 06/24/2004
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Market is expecting important decisions….Rate dynamics and recommendations on EUR-USD and GBP-USD.
No significant changes occurred on the market. Investors are still expecting important economic news on FRS decision upon the rates due at the end of this week and at the end of the month respectively. That is clearly seen on price chart – quotations are in trend triangle, which indicates slackening of the market. Let us remind that rate hike expectations are based on 2 figures – the rate is to be raised either 25 points higher, which won’t have a significant influence on the rate of the dollar, as FRS will take resolute measures on protecting economy from overheating, or 50 points higher, which will strengthen the dollar. Hypothetically, there is room for the third variant, when the rate will remain unchanged on the level of 1%, which might result in collapse of the rate this way or the other. That is less probable though.
FRS rate hike expectations are counterbalanced by rise in prices for oil due to continuing strike of oil-extractors in Norway. On the other hand, inventories increase can calm down dollar investors. In America, oil reserves rose 2,5 million barrels last week, gaz reserves reduced 800 000 barrels. U.S. Department of Energy said that on the week ended June 18, oil reserves rose 2,5 million barrels to 305,4 million barrels. That is 22 million barrels more, or 7,8% more than in the corresponding period of the previous year but 4,5 million barrels less, or 1,5% less than the five-year value for this time of the year. Last week, oil reserves were at their highest ever since August 2, 2002. Gaz reserves reduced 800 000 barrels to 205,1 million barrels last week. That is 1,9 million barrels less, or 0,9% less than in the corresponding period of the previous year and 9,0 million barrels less, or 4,2% less than the five-year value for this time of the year.
Recommendations: in the given situation, stick to the earlier given recommendations. Keep long-term shorts on Euro and pound sterling, arranging stops at break-even.
Recommendations: in the given situation, stick to the earlier given recommendations. Keep long-term shorts on Euro and pound sterling, arranging stops at break-even.
The forecast was created by trans1.
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