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Standard Bank: yen won't be depreciated[/COLOR]
Analysts at Standard Bank Plc predict that yen won’t significantly decline after Yukio Hatoyama left the post of Japanese Prime Minister. Such assumption is made as the national currency wasn’t much affected when the leaders resigned in the past.
The specialists underline that investors keep avoiding risks preferring safer assets. As a result, the demand for yen won’t suffer much.
[COLOR="green"]BNP Paribas: SNB will start interventions at 1.4110[/COLOR]
According to strategists at BNP Paribas SA, the Swiss National Bank (SNB) is likely to keep intervening at the foreign exchange market to prevent franc’s excessive strengthening versus the single currency.
The specialists expect that the Switzerland’s central bank will be selling national currency versus euro when the franc is approaching the key technical level at 1.4110.
[COLOR="green"]Royal Bank of Scotland: euro can be used to finance carry trade[/COLOR]
Analysts at Royal Bank of Scotland Group Plc claim that the depreciation of commodity-currencies provides investors with possibility to buy them against euro and yen.
Although commodity currencies aren’t expected to start rising again soon, their current weak level can be used for carry trade versus European and Japanese currencies. The specialists note that as euro didn’t manage to follow the upward dynamics of US stock market, it can play the role of funding currency.
[COLOR="green"]Standard Bank: euro will decline to C$1.2230[/COLOR]
Strategists at Standard Bank Plc expect that euro will decline versus Canadian dollar getting down to C$1.2230. As a result, the specialists advise investors to sell the single currency versus loonie. The pair EUR/CAD is currently trading at 1.2720/30 area.
In addition, New Zealand dollar’s dollar is expected to climb versus the greenback to 70.60 U.S. cents, so Standard Bank also recommends starting kiwi purchases. The pair NZD/USD is currently trading at 0.6860 area.
[COLOR="green"]EUR/USD: comments[/COLOR]
The single currency rose from 4-year minimum at 1.2110 to European trade’s maximum at 1.2325. Euro is now declining again getting below 20-hour SMA at 1.2270. The pair EUR/USD is currently trading at area 1.2250/55.
If euro falls below 1.2235, the pair may survive a further decline to 1.2180/1.2200 and then to 1.2150 and 1.2110. To enter the uptrend the pair has to climb above 1.2285. In this case advance to 1.2310/30 is regarded as possible.
[COLOR="green"]Bank of Montreal: optimistic outlook for loonie[/COLOR]
Canadian dollar reached today the maximal level in more than 2 weeks trading versus its US counterpart. Loonie was helped by the 0.4% growth in oil price and 0.3% Standard and Poor’s 500 Index futures increase. All in all, Canada’s currency rose by 1.7% versus the greenback after the Bank of Canada lifted its interest rate to 0.5%.
Strategists at Bank of Montreal claim the increase in rates has certainly contributed to loonie’s strengthening. They are quite positive on the currency’s future dynamics expecting that tomorrow government report will show the advance of employment.
[COLOR="green"]US: jobless claims[/COLOR]
According to the data for the week before May 29, the number of initial jobless claims diminished by 7,000 and got equal to 453,000. The four-week average rose slightly to 459,000. As for continuing claims, they increased by 31,000 to 4.666 million at the week before May 22.
The Department of Labor figures show that the situation in the labor market didn’t get much better as the level of claims keeps being high.
[COLOR="green"]BNP Paribas: sell pound at its advance to $1.51[/COLOR]
British currency was rising today versus the greenback. Sterling was helped by the positive UK housing market data and advance in British stocks.
Nationwide Building Society announced that the average cost of a home rose in May by 0.5% to the maximal level in almost 2 years. British government managed to sell 2 billion pounds ($2.9 billion) of securities maturing in 2034. FTSE 100 Index extended by 1.7%. Analysts at Royal Bank of Canada in London note that there’s some slight evidence of the country’s economic recovery.
Specialists at BNP Paribas SA expect that pound may climb to $1.51. Never the less, the specialists believe that the data is not encouraging enough for making British currency rise in the long-term. As a result, they advise investors to use pound’s advance to sell sterling.
[COLOR="green"]On-line analytics from FBS always is available on: http://www.fbs.com/analytics/news_markets[/COLOR]
