Vector Securities - Analytics

    Vector Securities

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    Dollar bulls are running out of steam

    Dollar has started to face difficulties in continuing growth. Yesterday American statistics were better than expected again, the stock market also increased, but on this wave dollar could grow only against yen. Apparently, correction is about to happen with dollar. Yesterday Canadian dollar showed the most confident growth after strong data on GDP. 
    Today news background is limited. In Australia, the data on GDP for the 4th quarter were published. They were better than predicted, what became one more argument for bulls’ actions after the RBA session, which was successful for Aussie. Producers’ prices will be published in the Eurozone. Now this indicator is quite relevant in the light of recently published weak data on consumer inflation. At this moment, any improvement is improbable, energy prices have just started to move away from minimums. Euro can decrease further on weak data. GDP for the 1st quarter will be published in Switzerland, still, Swiss statistics have usually weak influence on franc’s dynamics, which is bound to euro. At the beginning of American session ADP report on employment in private sector and production ISM of NY will be published. Actual data can show mixed results – unemployment below forecasts and higher ISM. Concerns that for the second month in a row weak report on labor can make dollar bulls start profit fixation on the threshold of this session. 
    Trade tactics:
    Our plan still remains unchanged – purchase of EURUSD in the range 1.0790 – 1.0820, stop at 1.0700.
    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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