Saturday, 17 October 2009

Ashraf Laidi. Are Euro for the next rocket?

The combination is expected raise rates from the Federal Reserve and the weaker-than-expected report on the payroll for the month of June in the U.S., the Euro has given vital impetus to improve. Breaking the 18-week trend line resistance above $ 1.22, EUR is positioned to further strengthen to the $ 1.2480-00 area in mid-summer. The June FOMC meeting behind us and the next FOMC meeting in a month. Euro receive its share of optimism and panic as the output of American and European data, as well as statements by Fed officials, for svyaschayuschih markets in the past thought "policy-meykerov" for the future of their policies.

Although there is a strong chance to see $ 1.25, we expect that the euro will face at least one obstacle in the month, which will send it back to $ 1.2370 by the end of the month. This obstacle could be the result of strong consumer price index in the U.S. this month, or any other event which could give the credibility of a possible raise rates by 50 basis points at the August meeting, FOMC

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