Market is in doubt…Rate dynamics and recommendations on EUR-USD and GBP-USD. by OpenForex.com

Market is in doubt…Rate dynamics and recommendations on EUR-USD and GBP-USD.

10:14 07/13/2004

Market is in doubt…Rate dynamics and recommendations on EUR-USD and GBP-USD. The most expected event today is report on International trade deficit, which is the weakest point of the U.S. economy. The report always provokes slight volatility on the market and the character of the data received reflect in investors’ sentiments. Traditionally, data come out negative and the question is whether the changes between imports and exports are as forecasted. Another event expected is American PPI and CPI reports, which are to show the level of inflation and give the information that would help making forecasts in terms of FRS monetary policy. In case data indicate low dynamics of price rise, FRS will restrain from raising the rates. Usually, Refinancing rate hike positively affects exchange rate and stock markets. Prior to those important events, the rates of the Euro and pound sterling marked technical correction. That is greatly due to closing out medium-term positions, carried out by large market- makers. Oil market situation puts pressure on dollar quotations. In a whole, the situation can be determined as indefinite. Recommendations: keep long-term longs, as recommended earlier. Restrain from opening new positions. Recommendations: keep long-term longs, as recommended earlier. Restrain from opening new positions.

The forecast was created by trans1.