Vector Securities - Analytics

Vector Securities

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Players are still cautious and prefer not to leave current ranges

Players are still cautious and prefer not to leave current ranges
Yesterday sales of dollar continued, though they weren’t as active as the day before. It was partially by inertia after FOMC session, partially due to mixed economic data from the U.S.A. – the report on consumer inflation was worse than predicted, dollar reacted to it with new daily minimums. Still, euro’s attempt to fix above 1.1400 failed again. The shadow of Greek issue is still above the market. Series of contradictory statements about default expressed at American session, stopped further decrease of American currency. By the example of Greece, euro bureaucrats also decided to increase rates – the Eurogroup expressed statements about the probable exit of Greece from the Eurozone, if it doesn’t come to terms. We have no desire to comment on mutually exclusive statements. Everyone is already bored with Greek saga, everybody is waiting for its end. 
Looking at the list of today’s events, we can’t find on what we should focus. Producers’ prices in Germany, payment balance in the Eurozone, borrowings of public-sector in the U.K. – they are interesting themselves, but they are obviously not in the focus of this day. They aren’t expected to have significant influence on market’s dynamics. Only if consumer inflation from Canada can provoke quite strong, but local splash activity of Canadian dollar. Against such background we presume that today’s trades will pass calmly in consolidation mode.
Trade tactics:
Yesterday we failed to “catch on” the market – morning correction of euro didn’t reach planned prices for opening of position, so we continue to monitor from the sideline. Today we aren’t going to enter the market. It is risky to buy euro at current levels, but we don’t see grounds for sales now. 
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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