Market Analysis

05/17/2011 - 12:14
Currency strategists at RBS claim that the scandal with IMF Managing Director Dominique Strauss-Kahn won’t affect the single currency as the institution’s decisions on such important issue as bailing out the indebted nation doesn’t depend on one singular individual but is collectively made. In their view, the pair EUR/USD will return upwards to $1.44. Analysts at Bank of America Merrill Lynch note that John Lipsky, who has stepped in for Mr. Strauss-Kahn at the IMF, is well regarded by market...
05/17/2011 - 11:46
Here is more interesting analysis from Danske Bank. The specialists give 10 reasons why the Bank of England will keep rates unchanged this year: The output gap is too large, the economy hasn’t recovered enough from the last recession and the economic growth rate is low. In order to help production recover to the pre-recession level a substantial amount of monetary stimulus is necessary.  High unemployment (around 3% points above its structural level), the private sector won’t manage to absorb...
05/17/2011 - 10:20
Technical analysts at Commerzbank note that British pound was trading in the 1.6200 area yesterday. In their view, the outlook for the pair is still negative. The pair GPB/USD tested yesterday the 1.6155 level that represents 23.6% retracement of sterling’s advance from May 2010, so there is some short covering. According to the bank, British currency will decline to 1-year uptrend at 1.6067. The specialists advise investors to stay bearish on pound as long as it’s trading below 1.6520....
05/17/2011 - 09:47
Currency strategists at Danske Bank claim that although the single currency was under strong pressure during the past month, future dynamic of the currency markets will be determined primarily by the interest rate differential that are in favor of euro versus the greenback. The specialists think that the European authorities won’t support the idea of early Greek debt restructuring and this will help to constrain investors’ concerns. In addition, according to Danske, Greece’s debt problems won’t...
05/17/2011 - 08:54
Technical analysts at Mizuho Corporate Bank regard sterling’s 2-week decline versus the greenback as a correction from an overbought situation. In their view, all elements of the weekly Ichimoku Cloud speak for opening long positions. The strategists expect to see an interim minimum by the end of May. According to Mizuho, support levels for the pair GBP/USD are found at 1.6145, 1.6050, 1.5935 and 1.5820. Resistance levels lie at 1.6375, 1.6425, 1.6520 and 1.6600. The specialists advise to buy...
05/17/2011 - 08:04
Technical analysts at Bank of Tokyo-Mitsubishi UFJ claim that the single currency may fall to the 2-month minimum versus US dollar after it breaks down through important support at $1.4217 (23.6% Fibonacci retracement of advance from June 2010 minimum to May maximum) and $1.4148 (38.2% retracement of euro’s increase from a January minimum to the May high). Euro is currently trading in the $1.4180 area. The specialists think that its decline will accelerate when it gets below $1.40. According to...
05/16/2011 - 16:57
Technical analysts at UBS claim that the outlook for the single currency against US dollar will remain negative as long as it’s trading below resistance at 1.4340. In their view, the pair EUR/USD is poised down to 1.4021 and 1.3903. As for the longer term, the specialists expect the greenback to rebound ahead of the end of the Fed's QE2 program in June. According to UBS, investors have already begun unwinding significant short positions on US dollar. Chart. Daily EUR/USD  
05/16/2011 - 15:38
Canadian dollar declined versus its US counterpart from maximum of 0.9445 hit on May 2 to 0.9769 today. The pair USD/CAD managed to break above the 9-month bearish trend line at 0.9758. Currency strategists at BMO Capital Markets claim that if the greenback closes the day above this level, the short-term trend will reverse upwards within the longer-term downtrend from October. The specialists expect that the greenback will firstly consolidate at the current levels or even pull lower before the...

Pages