Citigroup predicts the future of the euro exchange rate, Commerzbank continues to hope for the depreciation of the dollar

Citigroup believes in the stability of the dollar

In brief: Citigroup says in the volatility of the euro and the dollar exchange rate growth now. Commerzbank does not consider the dollar a favorite.

Euro declines with great speed after reports that the stress tests for banks in the EU were easier than expected. As noted by Citigroup currency analysts, if this information is confirmed, the euro has become an exile in the foreign exchange market. Meanwhile, dealers noted interest in the euro / dollar in the area below 1.2800. The results of stress tests for European banks will be announced this evening.

According to the Commerzbank currency analysts, very good results can have a negative impact on the euro, as investors might think that the tests were too easy. The most optimal would be if some banks do not pass the tests, however, the banking sector in general is out of danger. The bank assured that such an outcome is most probable. In general, the Commerzbank consider that the euro will benefit from the results. Meanwhile, the euro broke the 7-month downtrend, however, overcome the resistance at around 1.30 so far failed. However, currency analysts at Commerzbank continues to expect growth in the short term to the 1.3120/50 area and believe that we can still see a correction to a pair of Fibonacci Retracement 1.3465 and 1.3510 before resuming the long-term bearish trend. Current euro / dollar 1.2931.

Ukrainian Globalist
2010-07-23 15:07, Currency news.

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