Thursday, March 08, 2007

Forex News: 07.03.2007 “Bear” tendency on EUR/USD keeps steady

Georgiy Fedotov, NorthFinance financial analyst: “After yesterday decline, EUR/USD rate came back to the level of 1.3125. Dollar rate was influenced by the data on industrial orders, which were below expectations and achieved their minimum since July 2000.

As we reported earlier, the decline of the indicator was connected with 60% reduction of new orders for aircraft and considerable decrease of orders in other industrial sectors.

There is a correction of descending movement of yen and Swiss franc rates, because the situation at the stock exchanges slightly stabilized.

Today the two-day BoE meeting starts in London, the results of which will come under light tomorrow. The rates are most likely to be unchanged.

It is also important to pay attention to the index of manufacturing orders in Germany, which is expected to substantially increase, from -0.2 in December to 0.5 in January. The US consumer credit is also expected to rise to 10bln from 6bln in the preceding month. At night the results of interest rates in New Zealand are published.

Day diagrams of EUR/USD keep “bear” tendency, the movement that started on Monday is most likely to continue”, the analyst notes.


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