Market Analysis

05/11/2011 - 12:47
Analysts at JPMorgan claim that Japanese yen will once again rise to this year’s maximum versus the greenback as Japanese investors avoid investing in overseas assets willing to reduce risk following the nation’s biggest earthquake that took place on March 11. The specialists estimate repatriation performed by Japan’s investors and companies by 10 trillion yen ($123.5 billion). In their view, such situation is opposite to what may be seen in elsewhere in the world where the demand for higher-...
05/11/2011 - 12:41
Analysts at Daiwa Capital Markets claim that although Chinese inflation is still high, the country’s economy isn’t overheated. As a result, the specialists think that more aggressive policy tightening is not necessary. According to the data released today, China’s CPI added 5.3% in April on the annual basis after gaining 5.4% in March. Never the less, the strategists note that as inflation is still elevated, the nation’s monetary policy loosening in the second or third quarter seems very...
05/11/2011 - 12:27
Technical analysts at Societe Generale claim that US dollar’s advance versus Swiss franc is likely to be limited by Fibonacci resistance at 0.8840. The specialists say that the pair USD/CHF may fall to the record minimum of 0.8552 hit last week, on May 4. According to the bank, support levels for US currency are found at 0.8710 and 0.8675. Chart. H4 USD/CHF
05/11/2011 - 11:58
US dollar recovered from last week’s minimums in the 79.55 area rising above the short-term downtrend channel resistance in the 80.70 zone. Technical analysts at Commerzbank claim that the pair USD/JPY is trying to stabilize above support at 80.00/79.80 and get higher. The specialists think that the greenback may rise to 82.34/93 levels that represent 55- and 200-day MA. If US currency manages to overcome 82.93, it will be able to climb to the 4-year downtrend at 84.68. According to the bank,...
05/11/2011 - 09:44
UBS analysts give the following forecasts for the major currency pairs: EUR/USD: Neutral. Resistance is found at 1.4442, support lies at 1.4205 and 1.4158. USD/JPY: Bearish. If the greenback breaks below 80.00, it will be poised down to 79.57 and 78.83. Resistance is at 81.28. GBP/USD: Neutral. As long as resistance at 1.6464 holds, it’s necessary to pay attention to support at 1.6271. USD/CHF: Bearish. US dollar stays under pressure below 0.8893. Support levels are at 0.8677 and 0.8554. AUD/...
05/10/2011 - 12:42
Trading the pair GBP/USD one has to pay great attention to the inflation report released tomorrow by the Bank of England. Pound’s rate has decreased today even though the figures published today showed the growth in retail sales and house prices. GBP/USD went down from maximums in the 1.6750 area at the beginning of May to the levels close in the 1.6360 zone. It’s thought that British central bank may cut its forecasts for the nation’s economic growth. In such case, the possibility of the BoE...
05/10/2011 - 11:05
Last week the single currency broke down below the 5-month uptrend line and is trying to find support at the 55-day MA at 1.4233. Technical analysts at Commerzbank think that this support won’t be able to hold the bears. In their view, the pair EUR/USD will fall to 1.4145/55 representing 38.2% retracement of this year’s advance and April 18 minimum. The specialists think that if euro tries to move up it will face resistance at 1.4440 and 1.4600. In their view, euro will fail to overcome the...
05/10/2011 - 10:32
Analysts at Deutsche Bank say that the improving labor market is very important for the United States. In their view, if American economy outperforms the German one, the pair EUR/USD will get under negative pressure. US employment data on Friday was released on Friday was very encouraging: Non-Farm Payrolls increased in April by 244,000 that helped US dollar climb to 6-week maximum. Many analysts think that the greenback is able to strengthen versus euro. Strategists at J.P.Morgan Asset...

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