Market Analysis

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...
06/01/2011 - 08:34
According to the data released today, China’s official PMI fell for the second month in a row declining from 52.9 in April to 52.0 in May. HSBC China Manufacturing PMI went down to from 51.8 in April to 10-month minimum of 51.6 in May. Economists at Bank of America-Merrill Lynch claim that although Chinese PMI figures were lower, economic slowdown will be a “soft landing”: the nation’s economic growth rate will be slowly declining after strong advance seen earlier. In their view, the nation’s...
06/01/2011 - 08:03
Analysts at Citigroup think that if US debt overcomes the critical level, the greenback will be affected much more than Treasuries as international holders of American debt may regard potential losses as greater than domestic ones. The specialists think that the foreign exchange reaction to a debt ceiling breach would be sharper and probably more permanent. As a result, foreign investors will use every chance to sell dollars. US Congress has to find a way to avoid default before August 2. The...
05/31/2011 - 13:55
Analysts at BMO Capital Markets think that as the pair EUR/USD went down from maximums of early May in the 1.4900 area to 1.3970 it has formed a significant minimum. According to the specialists, the single currency will rise versus the greenback to 1.4700 in the third quarter of 2011 and to 1.4900 in the final 3 months of the year. However, the strategists expect euro to go through continuous slump next year falling to 1.4800 in the first quarter of 2012, to 1.4600 in the second one, to 1.4300...
05/31/2011 - 12:26
Technical analysts at Mizuho Corporate Bank claim that as the British currency rose from last week’s minimum at 1.6060 compensating 61.8% of May's decline and closing the week above 1.4300, the bullish pressure on the pair GBP/USD has strengthened. According to the specialists, sterling reached the long-term resistance area of 1.6500/7000. Mizuho expects pound to trade at these levels for the rest of the week and possibly for the whole summer. Chart. Daily GBP/USD  
05/31/2011 - 11:57
Canadian dollar may decline as it’s widely thought that the Bank of Canada will decide today not to raise its benchmark interest rate that’s currently at 1.00% level. The overnight rate will be released today at 1.00 pm GMT.     On the one hand, Canada has very strong fundamentals such as decreasing unemployment, shrinking budget deficit and faster growth than in the United States. On the other hand, loonie reached the maximal level versus the greenback since November 2007 on April 29 at 0.9445...