Friday, February 09, 2007

Forex News: 09.02.2007 No chance for dollar consolidation

“Rising oil prices left no chance for dollar consolidation”, Artem Enshin, NorthFinance financial analyst.

“Oil rose by $2/a barrel to the level of 60.32 during American session yesterday. In connection with this, oil prices have no tendency to decrease in the nearest future. The attempts of OPEC not to allow prices’ decrease and increased demand of major countries, the consumers of energy resources, produced their effect.

Gold again aims at its price maximums. In six months gold prices were fixed at $660/oz, during the last weeks the prices rose by $10.

The continuing balance of interest rates in the USA and Europe keeps the pair eur/usd in the corridor 1.2900-1.3100. The increase of interest rates in the USA is not expected in the nearest future, which is the reason for dollar weakening and euro rise toward the upper border of the corridor with further aim 1.33.

For two weeks we see the correction of British pound sterling, which dropped by 400 points since January 23, I do not forecast its breakdown. I consider that the sentiment toward pound rise dominates the market.

Yen is at its maximums, fixed at the end of 2005, and earlier in 2002. The current level of resistance 1.22, where it is traded at the moment, is rather solid. The determined aim of usd/jpi 118.

It is important to note that the index of wholesale prices in Germany was at the same level 0.0% in January. The significant news of today is trade in goods in December. The analysts expect its rise from -6.9bln from -7.2bln in the preceding month”.


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