Vector Securities - Analytics

    Vector Securities

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    Market players prefer to stick to the trend

    Market players prefer to stick to the trend
    On Friday market players became interested in dollar again. Probably, euro could have chances for correction development, but the ECB representatives constantly ruin all attempts to grow. Speaking at the conference in Frankfurt am Main, Mario Draghi reminded market players about the ECB readiness to use all available measures for increase of inflation. It helps to focus market’s attention on nearest session of the ECB, which will be held next week. Expectations of discrepancies in monetary policies of two main world regulators are still major driving force in the exchange market.

    This week will be notable for low liquidity of the market caused by celebration of Thanksgiving Day on the 26th of November in the U.S.A. Besides, on Friday US markets will close earlier than usual. All published economic indicators of the U.S.A. are concentrated in the first half of the week. Most interesting are improved durable goods orders and the second evaluation of GDP for the 3rd quarter. Under such conditions there are no prospects of the end of dollar’s growth. Probably, there won’t be impetuous growth, but increased pressure will remain. The Eurozone will also release a lot of important statistics – preliminary indices of business activity, preliminary GDP for the 3rd quarter and IFO report in Germany, publications of preliminary data on inflation will start in some countries. Here prospects are more unclear. Most indicators are expected to decrease. Combined with expectations of further stimulation measures widening, such result will become an additional weight for euro.

    This week will start with publication of preliminary data on PMI business activity in the Eurozone and data on houses sales in US secondary market. In the first case indicators have dangled at approximately the same level for half a year, so probably there will be no considerable changes. The situation with houses sales in US secondary market looks quite good – the indicator has shown confident growth for a year, what is quite good, despite some rollbacks. Today some decrease of growth rates is expected, still, taking into account annual dynamics, it is essential not to overestimate some short-term fluctuations.

     

    Trade tactics:

    EURUSD pair is likely to decrease further. The correction was short in time and size. It is difficult to take moving train, there are no opportunities for purchases now. So, we are waiting for appropriate conditions to enter the market.

     

    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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