Vector Securities - Analytics

    Vector Securities

    380.25 5.25/10
    73% of positive reviews

    Euro tries to renew growth

    Yesterday’s behavior of the exchange market is a mystery for us. Durable goods orders were quite good. The stock market also grew considerably, though after some deliberation. Under such conditions, growth of trade currencies is quite natural as well as yen’s bounce. Still, euro’s stability raises questions. Another attempt to fix below 1.1000 after strong American data failed. Asian session is also marked by euro’s purchases. Now this bounce can be interpreted within the frames of correction, last days of the month is to define final balance of power. 
    This day is actually the day of truth for euro this week. Preliminary data on German inflation for February will be published. If the report doesn’t show improvement, then the fact of discrepancies in monetary policy of two regions will become obvious again. It’s a disadvantage for euro. We’d prefer not to talk about inevitability of pair’s fall now. Today American statistics will play their role – the second evaluation of GDP for the 4th quarter, personal incomes and expenses. There are risks of downward revision of GDP. It is a negative factor for the stock market. As before, behavior of currencies depend much on dynamics of the stock market. For last three days, dollar’s index has stuck in narrow range 97.00 – 98.00. Probably, exit from it will give short-term guidelines. 
    Trade tactics:
    The situation of the exchange market remains unclear for us. By this moment, the pair has tested the upper boundary of the range, which it left at the beginning of February. The return above 1.1100 in EURUSD pair will considerably worsen opportunities for renewal of minimums for bears. In this case, technical picture will form preconditions for return to the levels 1.1300 – 1.1400. Now we are waiting. 
    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. 

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree