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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD. Positions of dollar and European currencies are poised.

13:54 02/17/2006

There were not big changes on FOREX the previous day. Quotations continue to consolidate near strong support levels.

 

The oil prices, the main factor of dollar support during all week, have most likely found the bottom. Yesterday in the American session the price again jumped from a level $57, 5 for barrel and was closed above a mark of $58 for barrel.

 

At 15.38 Moscow time March futures for the US crude oil have risen in price on 70 cents up to $58.35 after yesterday they were down $1.92 and were closed at the minimal level of $57.65 since December, 19th.April futures for oil Brent traded with increase on 55 cents up to $58.70 for barrel.

 

Earlier this month the oil prices have lost about 13 % owing to that the market switched its attention from geopolitical problems to stock volumes in the USA. And, according to one of the analysts, “these volumes are extremely bearish and a disaster for the energy prices”.

 

However Ritterbusch and Associates President Jim Ritterbusch pays attention to that petroleum futures, having lost 40% of cost this month, are supported now a little bit by increasing market prices "spot". The expert considers that the petroleum prices will develop a downtrend as soon as the manufacturers, who sold at a loss the last week, reduce production.

 

Petroleum stocks in the USA are at a 6-year maximum, therefore many analysts hope that its price hike will be short-term. The analyst at SG Commodities Alexander Kervinjo is sure that the downtrend will proceed at least till the 2 quarter - if only the potential problems with Iran or Nigeria are not realized, developing a trend.

 

Dynamics of dollar rise dipped also after the unemployment report: According to the US Department of Labor data, published today, for week on February, 11th, the initial jobless claims were up 19,000 to 297.000 in comparison with the revised indicator of 278.000for the last week  (earlier it was estimated as 277.000). Economists expected growth of the indicator only up to 285,000.

 

This gain has caused growth of seasonally weighed 4-week average value of the initial claims on 6,250 up to 283.000 against 276.750 a week earlier. This criterion is considered more reliable indicator of unemployment as it is free of volatility of weekly data and of such factors, as holidays, weather conditions or strikes.

 

For a week on February, 4th the total number of jobless claims was up 39,000 and made 2.511 million in comparison with 2.550 million a week earlier.

 

As a wholethe general market’s mood is neutral now. For the beginning of active actions exchange players have not found arguments yet. Factors Pro dollar and the factor Pro European currency are poised while. Therefore now it is not necessary to hurry up with opening positions.

 

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