Vector Securities - Analytics

    Vector Securities

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    Dollar continues to climb up

    Dollar continues to climb up
    We have to repeat quite obvious things – yesterday’s statistics were contradictory. The report of German ZEW institute showed decreased expectations of investors in the Eurozone as a whole, though German moods improved slightly. US consumer inflation almost met forecasts. Then industrial production has shown decrease for the third month in a row. Herewith dollar continues to strengthen, though at slow pace. Dollar’s index continues to move gradually to annual maximums in the range 100.40. 
    Today US statistics are notable – new houses laying and building permits for October and minutes of last FOMC session. Forecasts are mixed. Published indicators of housing market are practically at seven-year maximums. So, some decrease of growth rates won’t be surprising. Minutes are unlikely to add something new too. However, they can be used as a reason for profit fixation. Besides, several members of the Fed – Lockhart, Meister and Dudley will perform today. Most try not to give clear answers to the questions about increase in rates. Herewith their comments on this issue will definitely influence short-term fluctuations of the market.
    Trade tactics:
    Dollar’s growth rates fell to almost snail’s pace. Our technical indicators are in oversold areas in EURUSD pair, what gives signals of close correction. We presume that under such conditions exit from short positions will be appropriate. To aggressive traders we recommend considering pair’s purchase from 1.0570 – 1.0590, stop at 1.0480 under condition of entry into the market in the first half of the day. In case of a pair growth of more than 30 points from the entry point, rearrange stop at the entry point. 
    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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