Vector Securities - Analytics

    Vector Securities

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    The market believes more and more in December’s increase of rates

    Yesterday there was favorable atmosphere for dollar in the exchange market. Activity indices in service sphere of the Eurozone didn’t meet forecasts and were partially revised downward. In its turn, American statistics didn’t let down – ADP employment met expectations, trade balance deficit decreased more than expected, ISM growth came close to maximums of the year. Besides, during her speech in US Congress, Janet Yellen was more definite stating the possibility of increase in rates at December’s session. Against such background, dollar’s index tested 98.00, approaching July’s maximums.

    Today players’ focus can switch to British pound, or to be more precise, to scheduled session of the Bank of England on monetary policy. Here as well as in the situation with the Fed, it’s all about the terms of start of monetary policy tightening by the Bank of England. If the Bank of England leaves the door open for increase of rates in the nearest future, then pound will get chance for one more attempt to break through 1.5500. Today there is report on German production orders and forecast on economic growth by the European commission in the Eurozone. In view of some stabilization of economic indicators in recent weeks, prospects can be improved, what may stop further weakening of euro. Today’s statistics from the U.S.A. aren’t very significant, so they are unlikely to influence the market considerably.


    Trade tactics:

    EURUSD pair managed to break through support at 1.0900, now nearest aims are levels 1.0810 – 1.0830, where stabilization is possible. To aggressive traders we recommend considering pair’s sales from 1.0880 – 1.0900, stop at 1.1020. In case of a pair decrease of more than 30 points from the entry point, rearrange stop at the entry point. We don’t recommend keeping short positions for long. It is worth thinking about profit fixation below 1.0840. In the range 1.0780 – 1.0800 we consider pair’s purchase with stop at 1.0690.


    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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