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    Euro closed the day with profit, but it can be only a temporary respite

    Euro closed the day with profit, but it can be only a temporary respite
    Although yesterday volatility of the exchange market was high, trades passed calmly against the background of almost empty calendar. Within the frames of current movement, dollar renewed local maximums against most currencies, still, it couldn’t retain the advantage against some of them. In the second half of the day messages appeared that positions of Greece and creditors became closer and some draft agreement has been preparing, everything within the scope of eternal saga about Greece. However, some short-term players preferred to start profit fixation of euro at new minimums, what allowed euro to close the day with slight profit, what can’t be said about most other currencies. There is no single dynamics. As a result, dollar’s index closed virtually unchanged.

    Today news background isn’t rich in events. What concerns economic statistics of the Eurozone, there are only several insignificant mood indices, and with contradictory forecasts. Usually the reaction to these indicators is limited. British pound has more chances to improve its position – the U.K. will release the second evaluation of GDP for the 1st quarter and most forecasts point at upward revision. Still, if these expectations aren’t met, then it will just strengthen pressure on pound. We presume that main events will take place at American session today. Weekly applications for unemployment benefits and incomplete deals of houses sales are on the agenda. Certainly, the main focus will be on the second indicator, as it is more significant. Although forecasts on it are positive, still, last months the reality has taught us to be cautious about them. Nevertheless, dollar will be enthusiastic about regular confirmation of improved American economy.

     

    Trade tactics:

    Despite the fact that EURUSD pair closed the day with profit, we prefer not to make conclusions about the reversal of current movement, the more so since market dynamics was multidirectional yesterday. Looking at the chart of dollar’s index, we can say that yesterday’s closure, in terms of candlestick analysis, probably points at continuation figure and it can be renewed after consolidation. At this moment we have no well-grounded ideas about the entry into the market, so we stay observers. Now we consider euro’s purchases as premature.

     

    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.


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