Market Analysis

07/08/2011 - 10:11
There are, finally, some improvements on the USD/JPY chart. Japanese yen’s declining versus the greenback as the market looks forward to optimistic figures of US Non-Farm Payrolls report.    Economists surveyed by Bloomberg News think that NFP rose by 105,000 in June after adding 54,000 in May. The unemployment rate is expected to remain at 9.1%. Analysts at BNP Paribas note that the greenback may benefit from NFP data released today at 12:30 GMT if the number of jobs added in June shows either...
07/08/2011 - 09:26
Analysts at ANZ Banking Group claim that if the single currency falls versus the greenback getting below the 100-day MA at $1.4273, it may slump firstly, to June 16 minimum at $1.4074 and then to $1.3903 (50% Fibonacci retracement of this year’s advance from $1.2867 to $1.4940) that is the 3 1/2-month minimum.     The specialists claim that the euro has formed consolidation pattern since May 23 to July 4 between the uptrend line connecting the minimums of May 23, June 16 and June 27 and the...
07/07/2011 - 15:05
Analysts at UBS note that the European debt crisis will keep being the main driver of the single currency, Swiss franc and investors’ risk sentiment in the medium term. In their view, the outlook for the pair EUR/CHF during the summer months seems to be neutral. The specialists don’t expect any sustained upward correction of euro. According to UBS, risks for the pair remain asymmetric: while upside risk is limited, the downside one looks rather significant.   Strategists at Brown Brothers...
07/07/2011 - 14:33
Analysts at Brown Brothers Harriman think that after the European Central Bank has lifted up its benchmark interest rate today by 25 basis points to 1.5%, it will once again tighten its monetary policy in the fourth quarter of 2011. In their view, debt problems of the peripheral nations won’t derail the process of rate normalization. The specialists think that ECB’s hawkish approach is justified as the policy is still loose, while the amount of spare capacities keeps declining at faster speed...
07/07/2011 - 14:19
Australian dollar gained for the second day versus the greenback helped by the encouraging labor market data. The number of people employed in Australia rose in June by 23,400 after declining by 500 in May and 28,300 fall in April. Economists were looking forward to an increase of only 15,000. The unemployment rate remained at 4.9%. Analysts at Royal Bank of Scotland claim that good situation at Australian labor market increases the chances that the Reserve bank of Australia will raise the...
07/07/2011 - 12:58
Analysts at Commerzbank think that Swiss National Bank will raise the borrowing costs in September for the first time this year. In their view, the nation’s central bank faces a rather hard task of balancing uncertainty about the euro zone periphery with inflationary concerns in Switzerland. The specialists claim that strong national currency will likely make the SNS hesitate about hiking rates. However, according to the data released today, Swiss CPI added 0.6% in June from the levels of the...
07/07/2011 - 12:21
Analysts at UBS believe that although many of the largest market participants such as Asian central banks tend to diversify their assets from holding US dollars, the greenback will for some time more remain the major reserve currency. According to the COFER (Composition of Foreign Exchange Reserves) report released by the IMF, in the first quarter of 2011 reserves denominated in US dollars decreased by 0.8%, while the holdings in euro trimmed by 5.1%. The single currency was sold probably...
07/07/2011 - 11:09
The single currency slumped yesterday versus the greenback breaking below the support provided by the Ichimoku Cloud. Technical analysts at Commerzbank claim that the pair EUR/USD is now poised down to support line at $1.4145 and then to the 200-week MA at $1.4021, the recent minimum at $1.3968 and finally to the 200-day MA at $1.3900. According to the bank, strong resistance for euro is found at Wednesday's maximum in the 1.4465 area.   Chart. Daily EUR/USD

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