internationallove Posted April 18, 2011 Author Share Posted April 18, 2011 "J.P.Morgan: US dollar will remain weak"(2011-04-18) Analysts at J.P. Morgan claim that the world has got used to the weaker dollar. In their view, the current market’s sentiment is much different from what was just 6 months ago when Brazil’s Finance Minister Guido Mantega complained that weak dollar was creating a global currency war. The emerging markets seem to be more concerned about rising inflation when about exports, so they're letting their currencies strengthen. As a result, for those investors who are holding longs for the currency of a country with relatively high inflation, such as Brazil, Mexico or Singapore, the specialists advise keep buying this currency keeping short positions in US dollar. Comment here http://www.fbs.com/analytics/news_markets/view/7008 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 18, 2011 Author Share Posted April 18, 2011 "Commerzbank: negative outlook for EUR/USD"(2011-04-18) The single currency advanced versus the greenback from the minimums in the 1.4020 area hit at the end of March limited by the 1995 maximum at 1.4535. Technical analysts at Commerzbank claim that the outlook for the pair EUR/USD has now turned negative. In their view, as long as euro is trading below 1.4535 the bears dominate the market and the pair risks falling to the key support at 1.4279 that is the 4-month uptrend channel support line. The break above 1.4535 will be confirmed if the European currency closes the week above this level. According to the bank, the bulls will eventually win and EUR/USD will manage to overcome the mentioned resistance. In such case the outlook will change to neutral/bullish. Chart. H4 EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7010 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 18, 2011 Author Share Posted April 18, 2011 "Deutsche Bank: EUR/USD won’t rise above $1.50"(2011-04-18) Last week the single currency was performing well enough trading in the $1.45 area against its American counterpart. Analysts at Deutsche Bank think that euro's strength is caused by the greenback’s weakness. The specialists say that investors are using US dollar as a funding currency in carry trades borrowing in dollars and investing in the higher yielding currencies. Euro, on the other hand, isn’t used for that purpose since the European Central bank hinted on the rate hike. According to the bank, the pair EUR/USD has potential to climb to $1.50. Then the situation may rapidly change, note the specialists, as the rate expectations are probably not going to shift much more in favor of the euro. As the sentiment about US currency has become too negative any signals from Federal Reserve may reverse the pair. Economists at Brown Brothers Harriman also think that EUR/USD advance will be limited by $1.50 as the market will inevitably get aware about the debt problems of Spain and Portugal. Currency strategists at Nomura Securities are the most bearish on euro as they advance to sell the currency against Swedish krona and Norwegian krone. As the reasons for being short on euro the specialists cite the excessive pricing in of the ECB hike and the possibility of oil prices decline. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7015 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 18, 2011 Author Share Posted April 18, 2011 "Goldman Sachs keeps longs on EUR/USD"(2011-04-18) The advance of the single currency versus the greenback has stalled so far. Analysts at Goldman Sachs claim that as the risk sentiment has deteriorated, the bears may take profits on US currency. The bank, however, is rather optimistic about the longer-term prospects of the pair EUR/USD. The strategists remind that euro was supported by the expectations of the ECB rate hikes. The bank still expects that the European Central bank will lift the rates by 50 basis points this year, but think that in 2012 the key benchmark rate will reach only 2.5% as the inflation rate may ease and there will be a lot of spare production capacities. According to Goldman, euro was driven mainly by the broad dollar weakness and the factors negative for US currency are still in place. In addition, the bank expects that in the near future EUR/USD will get support from the further reduction of the fiscal risk premium. The strategists underline that when the debt problems escalated in the early January investors priced in sufficient risk premium for euro. While the Greek issues have once again got in the center of market’s attention, the narrowing yield spreads on Spanish and Italian bonds that are much more important from the systemic risk point of view allow looking for some contraction of this premium. As a result, Goldman Sachs remains bullish on euro and keep the existing long positions at $1.4085 from the March 18 targeting $1.50. Chart. H4 EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7017 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 18, 2011 Author Share Posted April 18, 2011 "ECB officials hint at further tightening"(2011-04-18) European Central Bank officials signal that the central bank will keep tightening monetary policy this year in order to fight rising inflation as the euro area’s economy’s improving, even though the ECB President Jean-Claude Trichet said that the rate hike to 1.25% conducted on April 7 wasn’t necessarily the start of a series. Ewald Nowotny (Austria): investors' expectations that the benchmark interest rate will be increased by another 50 basis points in 2011 are well-founded. The central bank will revise its inflation forecast after estimating in March that it would average about 2.3% this year. It’s quite obvious that both ECB interest-rate regime and liquidity regime have been in crisis mode for quite a long period of time. The euro area as a whole is no longer in the crisis situation and this development will be reflected in the ECB’s policy. Luc Coene (Belgium): monetary conditions are too accommodative. Axel Weber (Germany): there is a significant increase in inflationary pressure and current policy is supportive of the economy and expansive. Yves Mersch (Luxembourg): the growth dynamic is carrying on and is firming and that policy remains very accommodative. Vitor Constancio (ECB Vice President): Portugal is likely to be the last country to require help. Trichet underlined that economic growth is now self-sustained and risks are balanced. The IMF raised last week its growth prediction for the euro region to 1.6% in 2011 and 1.8% in 2012. Comment here http://www.fbs.com/analytics/news_markets/view/7018 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "Forecast Pte: EUR/USD may fall to $1.40"(2011-04-19) The pair EUR/USD lost 2% declining from the 15-month high at $1.4520 reached on April 12 and 13 to hit yesterday the $1.4158 level, the lowest level since April 5. Technical analysts at Forecast Pte claim that the single currency may decline to 1-month minimum versus US dollar in the $1.40 area – to the March 28 minimum at $1.4021 and the 50-day moving average at $1.4003. The specialists note that yesterday the pair EUR/USD dropped below 2 levels of major support – one at $1.4275 (situated on the uptrend line connecting the minimums of January 10, March 11 and April 1) and another at $1.4267 (20-day MA). The negative outlook for euro is confirmed by the daily momentum indicators such as the moving average convergence/divergence, or MACD that was today at 0.0104, below the signal line at 0.0125. Chart. H4 EUR/USD Comment here Forecast Pte: EUR/USD may fall to $1.40 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "Mizuho: comments on USD/JPY"(2011-04-19) Technical analysts at Mizuho Corporate Bank note that US dollar retraced 38% of its March advance versus Japanese yen and returned to the large “triangle” formation within which the pair was trading since November. The specialists point out that the greenback’s now trading close to the mean rate for this period found at 82.70. According to the bank, the pair USD/JPY is likely to fluctuate to either side of this level for the rest of this week. Mizuho advises to buy US currency stopping below 81.90 and taking profit at 83.80. График. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7023 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "Commerzbank: negative prospects for EUR/USD"(2011-04-19) Technical analysts at Commerzbank note that the European currency has breached its 4-month uptrend versus the greenback. As a result, the near-term outlook for the pair EUR/USD has switched to negative. The specialists believe that the bulls will face today the resistance at 1.4293 and 1.4377. As long as euro trades below 1.4377, it will be poised down to 1.4130 and the March minimum at 1.4021. Chart. H4 EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7025 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "S&P reduced the outlook for US credit rating"(2011-04-19) Standard & Poor’s changed the outlook for US AAA credit rating to negative that means that the debt of the world’s largest economy may be downgraded. To avoid this undesirable fate American officials have develop a plan to reduce by 2013 budget deficits and the huge national debt that’s complicated by the tensions between the Democrats and the Republicans. The agency estimates the possibility of the US rating reduction during the next 2 years as one-in-three. According to S&P, eventually Congress and the Obama administration are likely to reach agreement. S&P forecasts US debt to reach 84% of GDP by 2013. Obama has proposed to cut cumulative deficits by $4 trillion within 12 years through the combination of spending cuts and tax increases. US Republicans insist on the 10-year term. Analysts at Bank of Tokyo-Mitsubishi UFJ note that the United States still has the strongest, deepest, most-liquid markets in the world, so investors actually have no alternatives. Economists at Goldman Sachs say that it’s common knowledge that US fiscal situation is unsustainable unless a large, multiyear fiscal tightening is implemented. In their view, the S&P report contained nothing new on the matter. All in all, US policymakers got an important warning that they should hurry with developing the shortfall reduction process. As a result, the shift in the credit outlook should be regarded more as an attempt to urge the resolution of internal American problems than the revision the global debt market foundation. Comment here http://www.fbs.com/analytics/news_markets/view/7027 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "Rabobank: yen seems to have enough support"(2011-04-19) Currency strategists at Rabobank note that since the beginning of 2011 there’s strong correlation between the USD/JPY dynamics and the performance of the DJIA. The specialists point out that although the fundamentals hint at weaker yen that will be the case only as long as the market’s risk sentiment is positive. As a result, Japanese yen is going to be supported for now. The pair USD/JPY is staying today within the narrow range. According to the bank, investors have calmed down ahead of the appearance of some new drivers. In addition, the trade volumes will likely ease ahead of the Easter holidays (watch the Holiday schedules). Chart. H4 USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7029 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "S&P reduced the outlook for US credit rating"(2011-04-19) Japan’s Finance Minister Yoshihiko Noda claimed that despite the fact that Standard & Poor’s decreased the outlook for US’s AAA credit rating to “negative” the country’s authorities keep regarding US debt as an attractive investment destination. According to Noda, Treasuries would still be extremely good-quality securities even if the grade was lowered. Such comments of Japanese officials are logical as Japan is the world’s second-largest holder of US Treasuries after China. In February the nation’s investments in US debt accounted for $890.3 billion. It’s necessary to remember that in January Japan’s rating was cut by S&P to AA-. Japan is the most indebted developed nation with its debt-to-GDP ratio over 200%. As a result, to pay for the economic reconstruction after the devastating earthquake that took place on March 11 the country’s policymakers may be forced to increase taxes. Comment here http://www.fbs.com/analytics/news_markets/view/7033 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 19, 2011 Author Share Posted April 19, 2011 "Sumitomo Mitsui: S&P’s move will affect Japan"(2011-04-19) Poor’s had warned in February that it might revise its US outlook and so Monday's move was not really surprising. Sumitomo Mitsui believes that S&P may cut US credit rating in the next 3 months. The analysts claim that S&P’s decision means that there is now a scar on the once impeccable credibility of US bonds and could have negative consequences for Japan. This will inevitably weaken the dollar, and as a result will lead to yen’s appreciation. At the same time strong national currency is the last thing Japan needs now when it seeks funds for massive post-tsunami reconstruction. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7035 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 20, 2011 Author Share Posted April 20, 2011 "John Taylor: EUR/USD will be rising 3-4 months more"(2011-04-20) John Taylor, chairman and founder of FX Concepts, the world’s largest currency hedge fund, claims that the single currency has another 3 or 4 months to rally versus the greenback. Like many other economists Taylor thinks that euro will continue getting support from the widening interest rate differential as the European Central Bank is expected to keep tightening, while the Federal Reserve will likely stay on hold. The specialist notes that in Europe the Southern nations are in recession, while German economy is powering ahead, so Germany ought to have 5-6% rates, while the Southern Europe needs 0% borrowing costs. According to Taylor, the ECB one-size-fits-all monetary policy is a real problem for the region. Taylor says that the Eastern European currencies – Hungary’s, Romania’s and Turkish – as well as Australian and New Zealand’s dollars will outperform euro. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7038 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 20, 2011 Author Share Posted April 20, 2011 "BNY Mellon: US default is impossible"(2011-04-20) Currency strategists at BNY Mellon claim that the S&P’s decision to reduce US credit outlook to negative was very timely as the country’s debt and deficit have reached critical levels and American policymakers needed some shake-up. The specialists note that dollar managed to gain ground on this news rather than decline as the announcement caused the revises of the myriads of risks and when the market goes risk averse dollar tends to strengthen. Of course, the issue of possible US downgrade has to be considered, but there’s no chance that the United States is ever going to default. In the euro area, on the other hand, this may really happen. The bank says that although US can be downgraded in a couple of years, US represents the best bet in the modern world as it’s the biggest and deepest liquid market. On the other hand, it will be quite difficult to invest in the euro zone, the second largest market, due to the sovereign debt problems. According to BNY Mellon, the US probably doesn’t deserve its AAA status but it wins in the battle for investors compared with the other world. The analysts don’t think that US debt concerns will surpass those of the euro area. It’s necessary to understand that America can always print more money, so the point of default is never going to come. In the short-term of 6-8 months the specialists expect strong dollar as it will be risk-off, but in the longer term, if the solution is to print more cash, the greenback will be weak as it has been during the last decade. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7040 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 20, 2011 Author Share Posted April 20, 2011 "Standard Life Investments: ECB too hastened to raise rates"(2011-04-20) Analysts at Standard Life Investments claim that the European Central Bank has lifted up rates too soon as the euro zone nations are struggling with the debt crisis (ECB benchmark rate was increased by 25 basis points on April 7 to 1.25% level as a measure counter inflation that rose to 2.7% in March). In their view, the single currency may fall versus the greenback at least by 16% dropping to the pair value in the $1.20/1.25 area. The economists believe that by the end the downtrend of the pair EUR/USD will become evident. The specialists warn that the ECB’s restrictive monetary policy doesn’t correspond to the region’s financial state that is far from well. According to Standard Life Investments, there’s the risk that the ECB may raise the borrowing costs by more than is justified by the outlook for the economy and inflation, and then be forced to cut rates again. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7042 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 20, 2011 Author Share Posted April 20, 2011 "BayernLB: comments on EUR/CHF"(2011-04-20) Analysts at Zuercher Kantonalbank claim that the single currency has left the uptrend channel trading versus Swiss franc, so it needs to rise above 1.2960 in order to get chance to keep strengthening. If euro succeeds, it will be able to climb to 1.3075. Specialists at BayernLB note, however, that though franc fell to 1.2930 as the investors’ risk aversion eased, it may be hard for the pair EUR/CHF to overcome 1.30 and hold above this taking into account the continuing uncertainty about the euro area’s debt crisis. Chart. H4 EUR/CHF Comment here http://www.fbs.com/analytics/news_markets/view/7044 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Scotia Capital: dollar still has potential for decline"(2011-04-21) Currency strategists at Scotia Capital note that there are a lot of US dollar bears at the market. The greenback is losing both versus the commodity currencies (Australian dollar reached 29-year maximum above 1.7000) and the safe havens (see the pair USD/CHF that renewed the absolute minimum at 0.8850). The specialists say that the purchasing power parity analysis shows that some major currencies are significantly overbought: Aussie, for instance, is overvalued by 34%, Swiss franc – by 28%, euro – by 22% and the Canadian dollar – by 21%. According to Scotia Capital, this data should with no doubt be taken into account. The analysts note, however, that currencies can trade at overvalued levels during some time, especially taking into account the Fed’s loose monetary policy and Standard & Poor's negative outlook for US debt. As for the short term trade, the relative strength index (RSI) shows that no major currency is overvalued, so investors may keep selling dollar looking for its counterparts to set new highs. Chart. Daily USD/CHF Comment here http://www.fbs.com/analytics/news_markets/view/7058 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Sumitomo: long-term forecast for USD/JPY"(2011-04-21) Analysts at Sumitomo Life Insurance believe that the pair USD/JPY will once again drop below 80 yen in the first quarter of the next year. In their view, currency interventions didn’t put an end to yen’s strengthening. At the same time, the specialists underline that this move will be the final round of the currency’s appreciation. Sumitomo forecasts that during the next few years the greenback will be able to climb to 120 yen. American currency will get support from the US economic rebound and Federal Reserve's policy normalization that, in its turn, will widen the gap between Japanese and US interest rates. Chart. Weekly USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7060 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Commerzbank: EUR/USD on its way to 1.5145/50"(2011-04-21) The single currency advanced from the week’s minimums in the 1.4150 area overcoming the key resistance in the 1.4535 area (1995 maximum) and getting above 1.4600. Technical analysts at Commerzbank believe that the pair EUR/USD is on its way to 1.5145/50. If euro manages to close the week above 1.4535, the positive outlook for the currency will be confirmed. Resistance for EUR/USD is provided by the upper border of the 2-month uptrend channel at 1.4660. Chart. H4 EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7062 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Aussie renewed maximums versus the greenback"(2011-04-21) Australian dollar rose to the record maximum versus the greenback above $0.7000. There were many factors that had positive impact on the currency. Firstly, investors’ risk appetite was encouraged by US the advance of stocks. Then the interest rate advantage is still in favor of Australia: the RBA benchmark rate is at 4.75%, while the Fed and the BOJ keep the borrowing costs at the record low, close to zero. In addition, according to the data released today, Australian producer prices added 1.2% (q/q) the first quarter in comparison with the last 3 months of 2010 when they rose only by 0.1%. The country’s Foreign Minister Kevin Rudd claimed yesterday that Australia won’t “manipulate” the national currency ruling out the intervention prospects. The pair AUD/USD gained 16% during the past year due to the high revenues from coal and iron ore exports to China, hurting though such spheres as tourism, manufacturing and education. Chart. Daily AUD/USD Comment here http://www.fbs.com/analytics/news_markets/view/7064 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "RBC: assumptions on Greek debt restructuring"(2011-04-21) Analysts at Royal Bank of Canada claim that Greek debt restructuring would most likely consist of maturity extensions and the coupon payments’ reductions. In their view, the primary goal of this process will be to reduce redemptions in 2013-2016 to less than 10 billion euro a year. In order to accomplish that the country will need the agreement of the International Monetary Fund, the European Union and European Central Bank that hold around 28% of outstanding Greek debt. According to RBC, the unilateral forced restructuring by Greek authorities or a negotiated restructuring with significant reductions in principal repayments would be too tough for Greek and European banking systems. The bank specialists believe that Greece’s authorities have to incite the national bank to agree to restructure their debts in return for recapitalization, possibly with the funds provided by the EU. Greece’s 2-year bond yields rose above 20%, while the 10-year yields approached 15%, reports Bloomberg. Chart. H4 EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7067 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Rabobank: market underestimates debt risk in US and Japan"(2011-04-21) Strategists at Rabobank International believe that the financial markets underestimate the degree of the sovereign-debt crises risk in the United States and Japan. Bloomberg cites the Rabobank’s sovereign vulnerability index in comparison with the ranking based on the credit-default swaps: CDS Spread Ranking Rabobank Index Greece 1 1 Japan 7 2 Portugal 3 3 Ireland 2 4 U.S. 11 5 Italy 6 6 Spain 4 7 Belgium 5 8 France 9 9 U.K. 12 10 Austria 8 11 Netherlands 10 12 Australia 12 13 Germany 13 14 Finland 15 15 Denmark 17 16 Switzerland 14 17 Sweden 18 18 It’s easy to see that Rabobank regards Japan as the second most vulnerable economy after Greece that’s not surprising taking into account the fact that the country’s external debt accounts for more that 200% of its GDP. The market, however, puts the Asian nation only at the seventh place as the second position is occupied by Ireland which is followed by other euro zone members – Portugal, Spain and Belgium. According to the bank, large structural deficit of the United States makes it riskier than Spain and Italy. The analysts think investors should be less concerned about the situation in Europe. It’s necessary to note that Rabobank index is based on eight indicators: interest-growth differential, cyclically-adjusted primary budget balance, interest payments, and weighted average years to maturity, net public debt, external debt, current account balance and World Bank governance indicator. Comment here http://www.fbs.com/analytics/news_markets/view/7069 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 21, 2011 Author Share Posted April 21, 2011 "Commerzbank: negative outlook for USD/CHF"(2011-04-21) US dollar tried to recover versus Swiss franc in the first part of the week but failed in the 0.9000 resistance area. Then the pair USD/CHF renewed the record minimum falling below the previous absolute low at 0.8884 hit on March 16 to 0.8810. Technical analysts at Commerzbank say that the pair’s rate fell due to the broad weakness of American currency. In their view, the greenback is likely to fall to the base of the 5-month downtrend channel at 0.8730. According to the bank, any attempts of the bulls to improve the current state of things will be limited by 0.9017 and 0.9167 (2-month downtrend). As long as USD/CHF is trading below these levels, the outlook for it will remain negative. Chart. Daily USD/CHF Comment here http://www.fbs.com/analytics/news_markets/view/7070 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 22, 2011 Author Share Posted April 22, 2011 "Mizuho, Okasan expect USD/JPY to move down"(2011-04-22) Analysts at Mizuho Corporate Bank expect the greenback to lose grounds to Japanese yen as soon as the next week. In their view, the market will once again start talking about the potential intervention of Japan’s Ministry of Finance. The specialists say that US dollar bulls will be disappointed after the FOMC meeting scheduled on Tuesday-Wednesday. Taking into account rather modest US recent economic data it’s possible to assume that the Fed’s Chairman Ban Bernanke may sound rather dovish, so US monetary authorities will likely refrain from tightening during the rest of the year. So, the pair USD/JPY may fall to 80.00, believes Mizuho. Strategists at Okasan Securities believe that USD/JPY may fall below 81.00 in the near term as many investors may get rid of their long positions on USD ahead of the Easter weekend as there's some risk that China will let yuan appreciate against the greenback in order to stem rising inflation. According to Okasan Securities, weaker USD/CNY will put US dollar under pressure against versus currencies. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/7077 Quote Link to comment Share on other sites More sharing options...
internationallove Posted April 22, 2011 Author Share Posted April 22, 2011 "Morgan Stanley: nations will keep diversifying reserves from USD"(2011-04-22) Analysts at Morgan Stanley note that although Standard &Poor's worsened the outlook for US sovereign debt rating, it hasn’t so far affected the greenback’s dynamic. In the longer term, however, S&P's move will encourage the world’s nations to diversify their foreign exchange reserves away from dollars. The specialists underline that that any concrete action of rating agencies may trigger faster reallocation away from the US currency. In the near-term the market’s attention will be focused on the next week's FOMC meeting, though it’s useless to wait for the hints on of when the policy tightening is finally going to start. The bank also says that dollar will remain a funding currency until the Fed begins quitting its extraordinarily loose monetary policy. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/7079 Quote Link to comment Share on other sites More sharing options...
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