FBS_analytics
FBS Representative
- Messages
- 0
01/07/10
Citigroup: euro will rise to $1.25
Technical analysts at Citigroup Inc. expect the single currency to rise to $1.25. The specialists believe that euro’s trading range will narrow and the pair will be driven up above its 2-month downtrend. Support at $1.2154, think the analysts, will hold the pair from declining. Citigroup places resistance at $1.2363 and $1.2490-$1.2510.
European currency lost 13% getting down from $1.3667 on April 15 to the 4-year minimum at $1.1877 on June 7 and then recovered to $1.2398 on June 28.
European banks still at risk despite ECB’s lending
Yesterday the European Central Bank lent 131.9 billion euro ($161 billion) to 171 undisclosed firms for 3 months, while the analysts were projecting that 200 billion would be required. Never the less, euro zone banks are still vulnerable and need ECB support.
The region’s central bank’s attempting to make a gradual reduction of stimulus that was being used since Lehman Brothers Holdings Inc.’s collapse in 2008 when financial firms began to avoid crediting each other. Now debt crisis in Greece, Portugal and Spain is strongly harming investors’ confidence. Greek banks, Spain’s 45 savings banks, or cajas, and Germany’s state-owned Landesbanken have problems getting short-term refinancing forcing ECB to keep funding financial sector, claim investors at Zurich-based Swisscanto Asset Management.
Specialists at Schroders Plc. claim that although ECB actions managed to calm the market, some Spanish, Portuguese, Greek and Irish banks will still refinance their significant balance sheets on their own.
Barclays: euro rose after ECB announcement
The single currency rose supported by the ECB’s announcement that eased concerns about European banks’ refinancing abilities.
Euro zone banks have to repay 442 billion euro ($543 billion) of an expiring 12-month funding. In order to make this process smoother the European Central Bank allowed banks to use a 6-day refinancing operation getting unlimited loans at a fixed rate of 1%.
Currency strategists at Barclays Plc in London note that market sentiment improved and claim that the funding operations have currently the most significant impact on the euro rate.
Brown Brothers Harriman: GBP/USD is down for the third day
British currency is contracting versus the greenback for the third day in a row. It happened as the demand for riskier assets went down affected by the negative recent data that the rebound of the world’s economy will be weak, claim strategist at Brown Brothers Harriman Ltd. in London.
According to the survey of British companies performed by Markit Economics and the Chartered Institute of Purchasing and Supply, UK manufacturing growth declined with index falling from 58 in May to 57.5 in June. It’s also expected that US PMI released today by Institute for Supply Management fell from 59.7 in May to 59 in June as it’s expected by the economists interviewed by Bloomberg.
On-line analytics from FBS always is available on: Free Forex Charts, Fundamentsl Forex Market Analysis, Live Forex Trading Charts, Forex Technical Analysis, Forex Forecasts - Analytics and market news - FBS
Citigroup: euro will rise to $1.25
Technical analysts at Citigroup Inc. expect the single currency to rise to $1.25. The specialists believe that euro’s trading range will narrow and the pair will be driven up above its 2-month downtrend. Support at $1.2154, think the analysts, will hold the pair from declining. Citigroup places resistance at $1.2363 and $1.2490-$1.2510.
European currency lost 13% getting down from $1.3667 on April 15 to the 4-year minimum at $1.1877 on June 7 and then recovered to $1.2398 on June 28.
European banks still at risk despite ECB’s lending
Yesterday the European Central Bank lent 131.9 billion euro ($161 billion) to 171 undisclosed firms for 3 months, while the analysts were projecting that 200 billion would be required. Never the less, euro zone banks are still vulnerable and need ECB support.
The region’s central bank’s attempting to make a gradual reduction of stimulus that was being used since Lehman Brothers Holdings Inc.’s collapse in 2008 when financial firms began to avoid crediting each other. Now debt crisis in Greece, Portugal and Spain is strongly harming investors’ confidence. Greek banks, Spain’s 45 savings banks, or cajas, and Germany’s state-owned Landesbanken have problems getting short-term refinancing forcing ECB to keep funding financial sector, claim investors at Zurich-based Swisscanto Asset Management.
Specialists at Schroders Plc. claim that although ECB actions managed to calm the market, some Spanish, Portuguese, Greek and Irish banks will still refinance their significant balance sheets on their own.
Barclays: euro rose after ECB announcement
The single currency rose supported by the ECB’s announcement that eased concerns about European banks’ refinancing abilities.
Euro zone banks have to repay 442 billion euro ($543 billion) of an expiring 12-month funding. In order to make this process smoother the European Central Bank allowed banks to use a 6-day refinancing operation getting unlimited loans at a fixed rate of 1%.
Currency strategists at Barclays Plc in London note that market sentiment improved and claim that the funding operations have currently the most significant impact on the euro rate.
Brown Brothers Harriman: GBP/USD is down for the third day
British currency is contracting versus the greenback for the third day in a row. It happened as the demand for riskier assets went down affected by the negative recent data that the rebound of the world’s economy will be weak, claim strategist at Brown Brothers Harriman Ltd. in London.
According to the survey of British companies performed by Markit Economics and the Chartered Institute of Purchasing and Supply, UK manufacturing growth declined with index falling from 58 in May to 57.5 in June. It’s also expected that US PMI released today by Institute for Supply Management fell from 59.7 in May to 59 in June as it’s expected by the economists interviewed by Bloomberg.
On-line analytics from FBS always is available on: Free Forex Charts, Fundamentsl Forex Market Analysis, Live Forex Trading Charts, Forex Technical Analysis, Forex Forecasts - Analytics and market news - FBS