Monday, February 05, 2007

05.02.2007 The ascending trend of eur/usd will dominate this week

“From the beginning of the year, eur/usd has continued to be in the range of 1.2850-1.3050”, Artem Enshin, NorthFinance financial analyst comments. “In the nearest future it is not worth expecting the breakout of boundary levels toward either side. The corridor is designated very precisely. The consolidation of dollar against euro is characteristic of Friday from the level of resistance 1.3050 to 1.2950.

We expect the domination of the ascending trend of eur/usd to the upper border of the corridor during the week.

It is important to note that last week oil prices left the point, which was critical for producer, and came again to $59/a barrel, which is up to minimum prices for six months. The inconsistency of OPEC member-countries’ actions does not allow us to expect further rise of oil prices. At the moment the potential rise of oil prices is limited by $64/a barrel.

Gold still keeps high prices of $650/oz. This indicates that investors are not inclined to rely on dollar and preserve their assets in precious metals.

The week is saturated with news. One of the major events is trade balance in Germany on Thursday, the index is expected to drop from 18.5bln to 16.5bln. The Forex market also awaits the results of BoE and ECB meetings. We expect unchanged interest rates.

Today it is important to pay attention to the ISM services index in the USA”, the analyst says.


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