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    Disputes about the agreement on oil make the stock market feverish

    Previous day in the exchange market was much calmer than the day before. EURUSD pair renewed local minimums after publication of weak IFO report, but the movement range was limited. British pound was sold more actively, it renewed the 15-year minimums, and there as before the ground for fall is political disputes about exit of the U.K. from the EU. Then the stock market is still feverish – American indices lost almost everything reached the day before against the background of Iran’s skepticism about agreement on freezing of oil production. Actually, correction of the stock market was inevitable after multi-day rally, though it was unexpectedly deep. However, dollar demonstrated stability in this situation, but if the stock market continues to fall, then the situation will worse for dollar. Under these conditions, only yen feels confident. 
    Today there are no significant events. The U.S.A. will publish houses sales in the primary market and PMI in service sphere. At this moment, these indicators aren’t in high demand. Yesterday the secondary market grew unexpectedly, the same surprise is possible in the primary market too. Still, forecasts promise decline after sharp growth in previous month. However, this decline isn’t critical – sales have fluctuated in one and the same range for several months. Everything will depend on behavior of the stock market. 
    Trade tactics:
    Short position in euro, opened yesterday, we closed at 1.1000. After breakthrough of 1.1060, EURUSD pair looks vulnerable to further fall. However, under conditions of falling stock market, we have no desire to keep short positions for long. Now we stay out of 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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