Market Analysis

04/20/2011 - 14:32
Analysts at Barclays Capital claim that in order to confirm the reversal of the downtrend from April maximum at 123.32 versus Japanese yen the single currency has to close the day above 120.15. The specialists believe that the outlook for the pair EUR/JPY will remain bullish as long as it’s trading above the support area of 115.70/114.70. Chart. H4 EUR/JPY
04/20/2011 - 12:52
Analysts at UniCredit and Rabobank claim that today’s Spanish bond auction was successful enough. The country managed to sell 3.37 billion euro of 2021 and 2024 bonds. Bid-to-cover ratios were above 2 in both maturities, while the yields were slightly lower than secondary market levels. Never the less, Spain’s borrowing costs remain high due to the negative impact of the speculation about potential Greek debt restructuring that fuels concerns about the crisis contagion. The yield on 10-year...
04/20/2011 - 12:12
According to the data, released yesterday, Canada’s inflation rate rose in March to the maximal level since September 2008 of 3.3% after gaining 2.2% in February. As a result, the expectations of the Bank of Canada’s rate hike strengthened. Analysts surveyed by Bloomberg claim that in the third quarter the central bank will lift up rates from the current 1% level to 1.5%. The next BOC policy meeting is scheduled on May 31. According to the BOC, the recent economic activity in Canada has been...
04/20/2011 - 11:26
Technical analysts at Mizuho Corporate Bank note that the pair GBP/USD has bounced from the Kijun-sen (26-day MA) and Senkou Span A (the upper border of the Ichimoku Cloud). The specialists believe that sterling is poised to reach the recent maximums in the 1.6425 area. If this doesn’t happen today, then pound will test high another time during the Easter holiday days when the trading volume is low. The bank points out that a lot of British will be off work during 11 days from Friday. According...
04/20/2011 - 10:43
Analysts at Zuercher Kantonalbank claim that the single currency has left the uptrend channel trading versus Swiss franc, so it needs to rise above 1.2960 in order to get chance to keep strengthening. If euro succeeds, it will be able to climb to 1.3075. Specialists at BayernLB note, however, that though franc fell to 1.2930 as the investors’ risk aversion eased, it may be hard for the pair EUR/CHF to overcome 1.30 and hold above this taking into account the continuing uncertainty about the...
04/20/2011 - 10:05
Analysts at Standard Life Investments claim that the European Central Bank has lifted up rates too soon as the euro zone nations are struggling with the debt crisis (ECB benchmark rate was increased by 25 basis points on April 7 to 1.25% level as a measure counter inflation that rose to 2.7% in March). In their view, the single currency may fall versus the greenback at least by 16% dropping to the pair value in the $1.20/1.25 area. The economists believe that by the end the downtrend of the...
04/20/2011 - 09:06
Currency strategists at BNY Mellon claim that the S&P’s decision to reduce US credit outlook to negative was very timely as the country’s debt and deficit have reached critical levels and American policymakers needed some shake-up. The specialists note that dollar managed to gain ground on this news rather than decline as the announcement caused the revises of the myriads of risks and when the market goes risk averse dollar tends to strengthen. Of course, the issue of possible US downgrade...
04/20/2011 - 08:35
John Taylor, chairman and founder of FX Concepts, the world’s largest currency hedge fund, claims that the single currency has another 3 or 4 months to rally versus the greenback. Like many other economists Taylor thinks that euro will continue getting support from the widening interest rate differential as the European Central Bank is expected to keep tightening, while the Federal Reserve will likely stay on hold. The specialist notes that in Europe the Southern nations are in recession, while...

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