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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

USDCHF,USDCAD This week will be rather rich, but main events will become meetings of three largest central banks...

11:47 05/07/2007

Despite pessimistic expectations concerning payrolls in the USA for April, real figures of the indicator were even sadder.

Let's remind that at the forecast of new workplaces equal to 110 thousand, value of the indicator was 88 thousand thus the previous value was revised from 180 thousand up to 177 thousand.

 

And unemployment in the USA made 4.5 % for April, at the forecast of 4.5 %, and the previous value of 4.4 %. And the hourly earnings in the USA made +0.2 % for April, at the forecast of +0.3 %, and the previous value of +0.3 %.

 

As a result economists’ forecasts that FRS will leave the rate constant and in future even probably lower it found additional support. Thus similar forecasts concerning ECB and Bank of England decisions about interest rates leave chances for increase.

As a result right after publication of the US labor market survey the dollar exchange rate decreased. So, the euro/dollar strengthened up to a level 1.3608, and the pound/dollar rate grew up to a level 1.9939, that is by 100 points above a day minimum.

 

The dollar dipped against the Japanese yen as well. The dollar/yen rate was under additional pressure of the publication of the minutes of meeting of Bank of Japan Governing Council from March, 19-20th, according to which the decision to leave a level of the basic interest rates without change was accepted unanimously.

In the text of the document it was noted that change of rates will be made according to change of an economic situation.

However thus some members of the Council supported gradual increase of interest rates without any approved schedule.

 

Thus already today on a background of a holiday subtlety of the market due to the day off in Great Britain exchange rates at the European session remained in a vein of the yesterday's tendency.

The euro/dollar rate having broken stop above a mark 1.3622, remains stable near a level 1.3600. And after the test of a mark 1.9973 the pound/dollar rate is about a level 1.9960.

Also we remind that the index of factory orders in Germany made +2.4 % for a month, +9.9 % for a year for March, at the forecast -0.7 % for a month, and the previous value of +4.3 % for a month, +9.8 % for a year.

 

Taking into account the situation on the market we predict that after some rise weakness of dollar will renew. Therefore we recommend to begin sales of the dollar/franc rate from a level 1.2135. It is necessary to consider as the first purpose of sales a level 1.2055,and the second - 1.2035.

In the same manner the dollar/canadian rate should be sold from a level 1.1050.

 

 

 

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19/12 21.15
TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
USD/CAD1.00521.0056
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
GBP/CHF2.30702.3080
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