Tuesday, January 23, 2007

Forex News: 23.01.2007 The ascending dollar trend is continuing

“Today we see the continuation of the ascending trend of dollar toward other currencies, excluding yen. The favorite of this movement is British pound, and the kea psychological aim in case of breaking through will be 2.00”, Georgiy Fedotov, NorthFinance financial analyst says.

“Yen continues to weaken toward major currencies. The traders expected that the Bank of Japan would depart the policy of zero interest rates, but the expectations were not realized and the possibility of rate rise is slight. In connection with this, cross-rates GBP/JPY as well as EUR/JPY continue further movement. On GBP/JPY pair we approached the level of 1998. It is obvious that the movement will continue.

As for EUR/USD, the pair is greatly influenced by two factors: oil prices’ drop and nature disasters (the loss after Kirill hurricane was 4-8bln dollars). In connection with this, euro is positioned within a very narrow range. We may say it for sure that figures 1.30-1.32 will appear in the nearest future”, the analyst says.


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