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02/06/10
J.P. Morgan: yen declines as Japanese Prime Minister resigns
Japanese currency declined versus all of its main competitors. It happened as the country’s Prime Minister Yukio Hatoyama the leader of Democratic Party of Japan announced he would resign as the majority of Japanese population was dissatisfied as he didn't keep his promise to remove US military base from Okinawa.
As a result, investors stopped regarding yen as a refuge. Analysts at Gaitameonline Co. believe that political problems will harm yen’s status. However, strategists at Global Hunter Securities claim that although the market seems to be cautious, the demand for yen didn’t fall dramatically. As the most of attention will be still focused on the European debt crisis, yen’s decline will bring the currency to a more favorable level for purchasing, claims J.P. Morgan.
CIBC: euro will fall to $1.18 in the third quarter
Analysts at CIBC Monthly FX expect that the single currency will keep falling in the third quarter to hit 1.1800. This will happen under the negative impact of the debt crisis and the reduction of government spending.
The specialists forecast that after that euro may start to rebound gradually to 1.2000. As for the next year, CIBC predicts that the European currency will appreciate slightly to 1.22 in the first quarter, 1.24 – in the second and 1.30 – by the end of 2011.
ANZ National Bank: kiwi rose versus Aussie
New Zealand’s dollar reached week’s maximum versus its Australian counterpart as the country’s central bank is expected to raise this month key interest rate from the minimal 2.5% level. Australia’s rate is equal to 4.5%.
Strategists at ANZ National Bank Ltd. in Wellington claim that it’s likely that New Zealand’s monetary authorities will follow Bank of Canada that lifted the rates yesterday. The specialists note that investors are now stimulated to buy New Zealand’s dollar. In addition, New Zealand’s May commodity export price index set a record maximum rising by 30% over the past 12 months.
Never the less, New Zealand’s Prime Minister John Key doesn’t believe that kiwi will be able to outrun higher-yielding Aussie.
Mizuho: pound strengthened versus US dollar
British currency rose today getting to the maximal level in almost 3 weeks versus the greenback. It happened as British company Prudential Plc abandoned its $35.5 billion takeover of American International Group Inc.’s main Asian life-insurance unit.
Strategists at Mizuho Corporate Bank Ltd. claim that the failure of the largest transaction of such kind resulted in pound’s strengthening because sterling won’t be sold for foreign currencies.
BNP Paribas: SNB interventions will affect higher-yielding currencies
Analysts at BNP Paribas SA suppose that the efforts of Swiss National Bank to prevent national currency from appreciation versus euro can lead to the lowering of higher-yielding currencies.
If Switzerland’s central bank buys the single currency, this will absorb euro liquidity causing the drop of European bank stocks. As a result, there will be no way for investors but to stop commodity and high-yield trade.
USD/CHF: comments
The pair USD/CHF was trading yesterday with high volatility. Firstly, it bounced from the session’s minimum at 1.1525 to year’s maximum at 1.1730 and then slumped again losing 300 pips.
The rate returned today to the previous level between 1.1535 and 1.1590. The greenback is currently trading at 1.1530/40 area.
If US dollar is up, resistance levels will be found at 1.1730 and 1.1774. If the pair declines, support lies at 1.1449.
USD/JPY: comments
The greenback rose from Tuesday’s minimum at 90.55 versus Japanese yen and went above 91.75. The pair USD/JPY is currently trading at 91.90. If US dollar gets above this level, it may climb to 93.50. If the pair declines, important support will be at 91.60.
On-line analytics from FBS always is available on: FBS Holdings Inc. Forex CFD Futures
J.P. Morgan: yen declines as Japanese Prime Minister resigns
Japanese currency declined versus all of its main competitors. It happened as the country’s Prime Minister Yukio Hatoyama the leader of Democratic Party of Japan announced he would resign as the majority of Japanese population was dissatisfied as he didn't keep his promise to remove US military base from Okinawa.
As a result, investors stopped regarding yen as a refuge. Analysts at Gaitameonline Co. believe that political problems will harm yen’s status. However, strategists at Global Hunter Securities claim that although the market seems to be cautious, the demand for yen didn’t fall dramatically. As the most of attention will be still focused on the European debt crisis, yen’s decline will bring the currency to a more favorable level for purchasing, claims J.P. Morgan.
CIBC: euro will fall to $1.18 in the third quarter
Analysts at CIBC Monthly FX expect that the single currency will keep falling in the third quarter to hit 1.1800. This will happen under the negative impact of the debt crisis and the reduction of government spending.
The specialists forecast that after that euro may start to rebound gradually to 1.2000. As for the next year, CIBC predicts that the European currency will appreciate slightly to 1.22 in the first quarter, 1.24 – in the second and 1.30 – by the end of 2011.
ANZ National Bank: kiwi rose versus Aussie
New Zealand’s dollar reached week’s maximum versus its Australian counterpart as the country’s central bank is expected to raise this month key interest rate from the minimal 2.5% level. Australia’s rate is equal to 4.5%.
Strategists at ANZ National Bank Ltd. in Wellington claim that it’s likely that New Zealand’s monetary authorities will follow Bank of Canada that lifted the rates yesterday. The specialists note that investors are now stimulated to buy New Zealand’s dollar. In addition, New Zealand’s May commodity export price index set a record maximum rising by 30% over the past 12 months.
Never the less, New Zealand’s Prime Minister John Key doesn’t believe that kiwi will be able to outrun higher-yielding Aussie.
Mizuho: pound strengthened versus US dollar
British currency rose today getting to the maximal level in almost 3 weeks versus the greenback. It happened as British company Prudential Plc abandoned its $35.5 billion takeover of American International Group Inc.’s main Asian life-insurance unit.
Strategists at Mizuho Corporate Bank Ltd. claim that the failure of the largest transaction of such kind resulted in pound’s strengthening because sterling won’t be sold for foreign currencies.
BNP Paribas: SNB interventions will affect higher-yielding currencies
Analysts at BNP Paribas SA suppose that the efforts of Swiss National Bank to prevent national currency from appreciation versus euro can lead to the lowering of higher-yielding currencies.
If Switzerland’s central bank buys the single currency, this will absorb euro liquidity causing the drop of European bank stocks. As a result, there will be no way for investors but to stop commodity and high-yield trade.
USD/CHF: comments
The pair USD/CHF was trading yesterday with high volatility. Firstly, it bounced from the session’s minimum at 1.1525 to year’s maximum at 1.1730 and then slumped again losing 300 pips.
The rate returned today to the previous level between 1.1535 and 1.1590. The greenback is currently trading at 1.1530/40 area.
If US dollar is up, resistance levels will be found at 1.1730 and 1.1774. If the pair declines, support lies at 1.1449.
USD/JPY: comments
The greenback rose from Tuesday’s minimum at 90.55 versus Japanese yen and went above 91.75. The pair USD/JPY is currently trading at 91.90. If US dollar gets above this level, it may climb to 93.50. If the pair declines, important support will be at 91.60.
On-line analytics from FBS always is available on: FBS Holdings Inc. Forex CFD Futures