Analysts at Nomura claim that the greenback may strengthen to 82.5 yen by the end of the second quarter.
The specialists think that the demand for the Japanese currency may decrease in the coming months. Such assumption is base on the fact that in May there was a significant increase in outward portfolio investment via investment trusts.
In addition, although the nuclear power plants will be gradually restarted in the second half of 2011, there risk that shutdowns will last longer remains....
Currency strategists at UBS expect the single currency to decline versus the greenback.
In their view, the dynamics of the pair EUR/USD after ECB’s President Jean-Claude Trichet’s hinted on Thursday at the coming rate hike shows that the potential of policy differentials as euro’s driving force is fading away.
According to the bank, July will characterize by the increased macroeconomic uncertainty in the euro area and the end of the Federal Reserve’s QE2. As a result, risky assets, equities and...
Analysts at ANZ Bank still think that the Reserve Bank of New Zealand will lift up the Official Cash Rate in December from the record low 2.5% level even despite the series of new earthquakes (magnitude 5.2 and 6) tremors in New Zealand's second largest city of Christchurch that took place on Monday and Tuesday.
In their view, investors are currently pricing in 14 basis points of rate hikes by December compared with 22 points before the latest tremors. According to the specialists the market’s...
The situation at USD/CHF market changes little. There’s still the clear downtrend on the daily chart.
The bearish Cloud remains wide. All lines of the Indicator are directed downwards (1, 2, 3 and 4).
All that allows regard dollar’s advance as another correction.
Chart. Weekly USD/CHF
It’s possible to see on the daily chart that last week US currency was slowly moving up.
Never the less, the prices have approached the Turning line that may act as a rather strong...
Last week the greenback has slightly advanced. There was a small “hammer” formed on the weekly chart that may mean that the rebound of US currency may continue.
Never the less, the general outlook still isn’t in favor of bulls. The priced remained below the horizontal Standard line that will create rather strong resistance. The Turning line went rapidly down as well as the lines limiting Kumo – Senkou Span A and B., In addition, yen is still under pressure of the bearish Ichimoku...
Last week pound kept declining – the prices broke down through the Turning line and lost almost 200 pips.
At the same time the “golden cross” formed by Tenkan (1) and Kijun (2) above Kumo is still in place. The rising Ichimoku Cloud remains wide (3) that means that the bulls are still rather strong and will likely be able to keep the pair moving within the uptrend.
Tenkan-sen acts as resistance, while the uptrend line and Kijun-sen have the role of support.
Chart. Weekly GBP/USD...
Australian dollar went down versus the greenback as the country’s government released draft legislation on the controversial mining tax.
Analysts at Westpac note that Aussie is also under pressure due to the decline of the regional equities and the deteriorated investors’ risk sentiment. According to the specialists, support for AUD/USD is situated at 1.0441. The strategists think that traders plan to buy Australian currency on the dips.
Analysts at Morgan Stanley regard Aussie as the most...
Technical analysts at Commerzbank claim that the single currency may fall versus Japanese yen as it didn’t manage to break through the key resistance at 117.85 (55-day MA). The specialists claim that if EUR/JPY goes below the uptrend line from March to June at 115.91, it will be poised to the 50% Fibonacci retracement of the advance from March to April at 114.91. Barclays Capital thinks that yen will strengthen if EUR/JPY falls below 115.50.
Analysts at Deutsche Bank also claim that it’s...