Market Analysis

06/03/2011 - 08:51
Strategists at Wells Fargo compare the situation in Greece in May of 2011 with what was a year ago. In their view, there are both common points and differences. As for the similarities, the source of investors’ fears remains the same, the Fed’s quantitative easing program is approaching its end and there are a lot of short USD positions. As a result, it’s possible to expect that the greenback’s weakness will be limited and that US currency will once again start strengthening in the coming weeks...
06/02/2011 - 15:49
European Central Bank President Jean-Claude Trichet claimed today that the governments of the European nations should consider the possibility of creating euro zone’s finance ministry. Trichet underlined that the euro area already has the single market, the single currency and the single central bank, so establishing the single ministry of finance seems to be both natural and vital step taking into account the current problems of the region. According to the ECB head, though such body as the...
06/02/2011 - 14:30
As US labor market and housing data is quite discouraging many analysts start wondering whether American monetary authorities will extend monetary stimulus to promote the rebound of the nation’s economy in form of the third round of quantitative easing.    The greenback was under pressure this year as the QE2 made the interest rates in the United States decline, while the other nations in the world were tightening monetary policy. So, the market has been looking forward to the end of the Fed’s...
06/01/2011 - 13:11
Australian dollar rose today to the 3-week maximum versus the greenback in the 1.0750 area gaining nearly 1%. Aussie was encouraged by the news that the nation’s GDP fell in the first quarter only by 1.2% from the previous 3 month – though it was the biggest quarterly drop in 20 years, some economists were looking to much more dramatic figures. For example, analysts at Goldman Sachs expected the slump of more than 2%. Support for the pair AUD/USD is situated at $1.0637, while resistance is...
06/01/2011 - 11:19
Yesterday Moody's Investors Service began reviewing Japan’s Aa2 credit rating as the negative consequences of March 11 earthquake may turn out to be greater than expected and the measures to reduce the nation’s huge budget deficit aren’t efficient enough because of the political tensions between the opposition and the current government.  According to the ratings agency, Japanese debt will keep rising unless spending is cut or revenue’s increased. It’s necessary to note that Japan's gross debt...
06/01/2011 - 10:41
Technical analysts at UBS claim that euro’s rebound versus the greenback from last week’s minimum at 1.3970 paused ahead of resistance in the 1.4455 area. In their view, the pair EUR/USD will manage to break above this zone. In this case the bullish pressure on the single currency will increase encouraging it for an advance to 1.4569. Chart. H4 EUR/USD
06/01/2011 - 09:57
The single currency surged yesterday versus Japanese yen. Today the pair EUR/JPY is testing resistance of the 55-day MA at 117.45. Technical analysts at Commerzbank claim that if euro manages to get above this level it will be poised up to 119.11 and then to the recent maximum at 123.33. According to the bank, support for the pair is situated at the 200-day MA at 113.23 and 55-week MA at 112.91. The outlook for euro is neutral/positive. Chart. Daily EUR/JPY
06/01/2011 - 09:32
The Atlantic hurricane season has begun today and will last traditionally till the end of November. Weather experts in US National Weather Service’s Climate Prediction Center expect an above-normal hurricane season this year with 12 to 18 named storms, of which 6-10 could become hurricanes. Analysts at BMO Capital gave investors a piece of advice on how to trade on hurricane news. In their view, the best strategy in such case is buying oil-exporting country's currencies versus US dollar. Oil...

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