Friday, January 19, 2007

Forex News: 19.01.2007 Even the drop of oil prices did not help American currency

“As we denoted before, EUR/USD pair was in the corridor of 1.2930 during the week. Despite positive news releases, euro regained previous drop and “drew” the week maximum. Even the drop of oil prices did not help American currency (Oil prices tended to fall throughout the week). It is still at its local minimums 51.5”, Artem Enshin, NorthFinance financial analyst says.

The pound sterling was stably volatile during the week. The summary rise from the beginning of the week was almost 200 points. Its movements were especially active yesterday. Following the drop 1.9650, it came back to its local maximums, to the level 19775. This indicates that we returned to the price maximums of yearly December. The pound is almost at the maximums of recent years and the level 1.9800 will produce rather strong technical resistance.

Today we expect the publication of the UK budget deficit (PSNCR) in December. In November, the index was 7.1bln stg. Two times increase is expected, to 15.3bln stg. Retail sales in Great Britain are also published today. In the preceding month, the index was 0.3%. in December it is supposed to rise by 0.5%. According to analysts’ opinion, the preliminary Michigan sentiment index will be 92.0% in January, compared with 91.7% in the preceding month.


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