Vector Securities - Analytics

    Vector Securities

    382.00 4.00/10
    73% of positive reviews

    Dollar still faces good times

    Dollar still faces good times
    Yesterday all most significant reports from the U.S.A. were better than predicted – durable goods orders with the exception of transport, houses sales in the primary market, Consumer confidence index increased. It allows to renew speculations on monetary policy tightening in the U.S.A. and its discrepancies with other regulators. Accordingly, positive data facilitated continued growth of dollar against most currencies. 
    Today there are practically no economic statistics. The Bank of Canada session on monetary policy. Changes aren’t expected, so everything depends on accompanying comments on outcomes of the session. From our point of view, this session won’t give significant support to Canadian dollar in any event. Only improved forecasts on economy may become the positive, but against the background of yesterday’s positive from the U.S.A., the influence of forecasts will be limited. Now there is no decrease of interest to dollar, so it has a chance to continue growth. 
    Trade tactics:
    Yesterday we closed our short position on euro at 1.0895. Still, looking at market’s behavior, we have an impression that we did it too early and pair’s decrease isn’t finished. The closure of the day below 1.0900 retains the potential for continuation of current movement. We had an order for purchase from 1.0860, which didn’t work. After the closure of the day we cancelled order, We cancelled our yesterday’s recommendation for euro’s purchase at current levels and suggest not hurry with purchases. The nearest aims of euro’s decrease we expect in the range 1.0810 – 1.0830. We have no desire to sell euro at current levels again, but see no reasons for purchases. Now out of the market. 
    Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree