Vector Securities - Analytics

    Vector Securities

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    Everyone is waiting for something


    Another day passed without drama in the exchange market. The market regains any events locally, in general, we are stalling. Usually it concerns EURUSD pair. Yesterday British pound moved quite actively – first, on weak PMI in building, then on messages about convergence of approaches of the EU and the U.K. on membership in the EU. Canadian dollar couldn’t resist regular fall in energy prices and change of moods in the stock market and the pair bounced from minimums, not reaching annual minimums. Regaining unexpected decision of the Bank of Japan last week, Japanese yen decided to return to initial positions. However, it is all fragmentary, beyond the frames of any common movement. This day is one more day of business activity – in most countries, PMI in service sphere will be published. China has started quite well, what can slightly improve moods in energy market, and accordingly moods of trade currencies. Still, in general, the reaction is unlikely to be more active than similar production activity, its indices were published on Monday. Considering other events of the day, we’d like to highlight retail sales of the Eurozone as a whole and employment in private sector by ADP. In the first case similar data on Germany published last week were not interesting, though they were worse than predicted. Bu then, ADP report can attract more attention, especially if it considerably differs from forecasts.
     
    Trade tactics:
    We have to wait. EURUSD pair has been stalling in tough range for two months already. The longer it lasts, the more risks for trading within the range. It will end with sharp exit from the range to any direction. At this moment, the pair is striving to the upper board of the range. For today, we recommend to aggressive traders considering pair’s purchase under probable breakthrough of upper bound in the range 1.0960. Herewith stop is to be set far from the entry to avoid strong fluctuating movements, which can accompany breakthrough. Our variant of stop – 1.0760. 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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