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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Calm time on the market…Rate dynamics and recommendations on EUR-USD and GBP-USD.
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11:21 08/03/2004
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Calm time on the market…Rate dynamics and recommendations on EUR-USD and GBP-USD.
As a rule, August is vacation time. On the other hand, the course of the recent August events shows that August might have quite an unpleasant surprises in store for us.
The dollar is consolidating within the approached currency corridors. Recent economic data somehow calmed investors. Economic indicators, published in the U.S. last week, proved to be rather contradictory.
Yesterday’s data were quite calming for the dollar players.
The Institute for Supply Management reported on Monday, August 2, that national factory index rose to 62,0 in July compared to 61.1 in June.
Oil market is characterized with temporary calm, price went back to the previous levels, thus easing the pressure on the dollar and on the economy overall.
Positive releases on the EU economy and Britain support the Euro and pound sterling.
External geo-political factor – militant attacks’ threats - still affects the exchange rate of the dollar. On Sunday, danger readiness was raised to orange color for the financial and administrative centers of New York and Washington.
Now, market attention is fixed on Labor market report due Friday. That report will be the last one before the FOMC FRS meeting. It is natural that the given data will be decisive in estimating the situation in that sector and, in the end, might affect the decision that has to be made upon the rate of refinancing.
The key event of the week is due August 10, when the Federal Open Market Committee of FRS U.S. is to meet and to make a decision upon further monetary policy strategy, including the question of refinancing rates.
Recommendations: stay out of the market so far.
Recommendations: stay out of the market so far.
The forecast was created by trans1.
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