Vector Securities - Analytics

    Vector Securities

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    Dollar’s fall speeds up

    Yesterday there were no surprises – dollar continued wide-scale retreat against all main currencies. According to movement dynamics, such moods will be retained in the nearest days. The last day of the week is unlikely to change market moods. Today there are no global events. The tendencies, set by two main regulators, seem to continue, though in calmer tone. In the U.S.A. there are only speeches of the Fed representatives Dudley, Rosengren and Bullard. There are no reasons to expect any opposition to last decision of the Fed from them. On the contrary, the reason for this decision will become an additional factor of pressure on dollar. There are no significant events in the Eurozone either. German producers’ prices won’t allow euro to take a run, there is no change of the situation, but these data attract not much attention now. Today local events are of most interest – the Bank of England quarter report and set of economic reports in Canada. Prospects are most positive for Canadian dollar. Growth of energy prices and softer monetary policy by main regulators changed investors’ attitude toward Canadian currency sharply. Forecasts on retail sales and inflation are quite positive, if they are met, then further strengthening of Canadian currency is possible. 
    Trade tactics:
    According to yesterday’s recommendations, we opened long position in EURUSD pair from 1.1225, stop is rearranged at the entry point. Due to impetuous growth, some indicators point at overbought signs, what can slow down further growth. However, the nearest aim is at 1.1370 – 1.1380 is on the agenda. There are prospects for more considerable growth. Despite risks of correction rollback, what we have already faced, the only recommendation in current situation from us – to keep long positions. 
    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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