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Euro-dollar again came close to the critical level of 1.4150

Jun 30th, 2009 | By admin | Category: News International Markets

So, yesterday, the dollar continued to weaken, now shows a new maximum at around 1.4152. Has been updated up to June 24 at 1.4136. The situation re-worked according to the pattern typical of the market in June: an easy update of previous highs, the situation becomes critical, but not so that the movement has grown up in a powerful impulsive motion. Just off the foot of speculators, and the market back. In fact, today it purchased all of the fall of the euro, which took place at the Swiss Bank intervention. The specifics of such a motion that the purchase of euros in the shadow of a previous growth technically are not so alarming to the bears, and therefore correction of the drop from the previous growth can reach up to 100%, and a little more without breaking the technical picture. At the same time, a significant update of previous highs, the yield of 1.4150 marks, may have to provoke a sharp upward movement. Generally, from 16 June, when the euro showed a minimum at around 1.3747, there are solid purchases for the euro amounts to the above scheme. We are still waiting for all this liquidity will be accrued on the market in the form of attacks on the euro.

However, the reasons for wanting the dollar is growing at least at the U.S. Treasury. Today, posted a fairly large amount on a regular 4-week bill, 35 billion dollars (however, redeemable against the release of 4-week-old at the same 35 billion), and also posted regular 52-week (annual) of the Bill by 27 billion U.S. (June 2, redeemable against the 52-year-old weekly release of 17 billion dollars, it's been over a year since launching the annual bill, there will be a net attraction of 10 billion dollars). And tomorrow the Treasury announced the new release of the cache-Bill at $ 30 billion with a record period of 339 days, however, it is redeemable against the June 2, 238-day release of 40 billion dollars (actually, therefore, a net repayment 10 billion dollars). As a result of the above issues will be placing equal maturity.

However, this does not mean that this week, the Treasury is not yet announced any release cache-Bill. As we previously wrote, in July, the U.S. will have to pay the bill for the cache 175 billion dollars, of which 135 billion are in the second half of July. Therefore, in the second half of July, the Treasury will publish the cache bills for refinancing redeemable issues. And just about a free first half of July, the Treasury can use to attract clean. Recall that, according to plans, the Treasury, in the 3 rd quarter of the market is planned to attract 515 billion dollars (and hence to place so much, to pay the current payment, and to attract new funds). The dollar pyramid growing snowball, and under such conditions, obviously, can not allow the fall of the dollar below critical levels, otherwise the pyramid (already undermined by the various statements of denial from the U.S.) begins to falter early. The district is a critical mark of 1.4150, its steam in June jumping away 4 times (10, 11, 24 and 26 June). Serious resistance to the pair above it is not nearly up to 1.49. Unless it can be noted the level of 1.4250, but the output of this box will mean a rise above the levels at which the market before the publication of the last Nonfarm Payrolls, and thereby break a design, which was built the entire month of June. We still continue to believe that the purpose of forming this construction is the accumulation of the foot below the 1.38 mark, and forward motion down.

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