USDCHF,USDCAD In threshold of publication of important indicators of this week many maket's participants prefer to wait...
14:30 04/24/2007
Despite publication of contradictory data over the European economy during last three trading days European currencies remain under pressure against American colleague. However global market mood is still "northern". Let's remind that euro and pound are supported by positive expectations of fast increase in the basic interest rates in Europe (13) and Great Britain. The euro and pound are also sustained by information about purchase of Dutch Bank ABN Amro by British Bank Barclays Plc for 67 bln. euros in stock.
At the same time the dollar is under pressure of forecasts of probable decrease in FRS rates. Besides the market players do not hurry up with opening of new positions before publication of most important data of this week. Situation on the market can change significantly after the issue of data on existing home sales (today at 14:00 GMT) and on new home sales (tomorrow). Let's remind that the forecast of existing home sales in the USA for March made 6.40 bln, the previous value was 6.69 bln.
Today at 14:00 GMT there is a publication of consumers' confidence index in the USA for April. Forecast is 105, previous value is 107.2. The most significant publication for players today will be preliminary value of the US GDP for the first quarter of current year.
Today at 13:00 GMT there will be known results of meeting of Governing Council of Bank of Canada. Let's notice that as the majority of market players forecast the rates will be left at the former level of 4.25%. It is likely that falling of local support at $1.1205 will lead the pair to drop to $1.1180, and later to $1.1150. However we cannot exclude that unexpected statements of head officials of Bank of Canada can lead USD/CAD to up correction, which will give an opportunity for opening of medium term sales of rate. In case of realization of this script the first target will be level $1.1050.
Today at Asian session the rates of Australian dollar/dollar and also Australian dollar/yen dipped. The reason was data testifying to lower level of inflation in the country in comparison with economists' forecasts. These data reduced expectations of rise of interest rates by Reserve Bank of Australia at the nearest meetings.
Taking into account closeness of basic currency pairs to key levels of support we recommend to temporize while.
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