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NEWS / Forex Forecasts

USDCHF,USDCAD On a background of absence of significant news exchange rates are subjected to technical factors...

22:05 12/28/2005

So, yesterday celebrations proceeded (because of Boxing Day) in Australia, the UK and Canada that is why the financial markets in these countries did not work.

Let's remind that earlier, in connection with a of Christmas holiday, and also with approach of New Year's holidays investors’ activity in the market Forex had come practically to a zero level.

 

On this background, having taken an advantage of absence of some significant opposition, some players tried "to make their game". As a result after unsuccessful attempts of growth on Monday and yesterday the euro/dollar rate, having overcome rigid borders of a range, has undertaken one more jerk, which finally has been successful.

The impulse to forward to movement of euro/dollar rate was generated by the publication of German research group GfK data testifying to rise of consumer confidence in Germany.

So, today the euro/dollar rate has reached a mark of 1.1927. Earlier dollar was supported against the European currencies by the growth of dollar/canadian dollar rate, which has grown from 1.1657 up to 1.1745, and dollar/yen rate, which rose on more than 100 points from a level 116.36 up to 117.42 yesterday.

As a result, on a background of almost full absence of significant fundamental news, movements of currencies have basically been subjected to technical factors.

And today in focus of attention there were the publications of consumer confidence index in the USA, which is planned at 15:00 GMT. We shall remind that the forecast of consumer confidence index in the USA for December was equal to 102.3, and the previous value was equal to 98.9.

Considering an extreme subtlety of the market today, it is possible to assume that surprising values of confidence index can lead the basic currency pairs to significant movements.

Therefore we advise you to continue a temporizing policy.

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