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    Dollar bulls released pressure

    Dollar bulls released pressure
    Yesterday against the background of profit fixation started after publication of FOMC minutes the day before, dollar’s correction was developed further. The market practically ignored all statistics, though there were no significant indicators yesterday. However, production activity of Philadelphia and Index of leading indicators in the U.S.A. were better than predicted. It leaves chances for renewed growth of dollar. Today there are no significant events either. In the U.S.A. and the Eurozone, there are secondary indicators – production activity of Kansas and producers’ prices in Germany. Probably, the market will pay more attention to the speech of Bundesbank head Weidmann and the Fed representatives. As before, two main questions are still on the agenda – start of increase in rates in the U.S.A. and prospects of stimulation measures widening in the Eurozone. Today Canadian data can become most interesting event – inflation and retail sales. Waiting for these data, Canadian dollar was quite inert yesterday. Weak statistics will provoke further weakening of Canadian currency. 
     
    Trade tactics:
    Yesterday’s growth of euro doesn’t change technical picture yet – the trend remains descending. Today within the framework of continued correction, testing of levels above 1.0800 is possible. If it happens, then we recommend renewing short sales from 1.0810 – 1.0830 with stop at 1.0950. Much will depend on level of week’s closure. Closure of the week below 1.0700 will retain pressure on the common currency. 
     
    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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