Dollar Strength Medium-Term

September 2005 | Currency Forecast

The euro has fallen from resistance at US$1.2600/EUR over the past two weeks to support in the US$1.2270/EUR region, as the market focuses on growth and interest rate differentials, as well as uncertainty surrounding the German elections. If the US$1.2260/EUR level gives way, the single currency will dip further to major support around US$1.2200/EUR. Any break of this level would be a negative signal for the euro, presaging a potential re-test of the US$1.1900/EUR low of July. However, we would expect the US$1.2200/EUR area to hold, ensuring that the 2.5 month uptrend remains in tact for now. This would therefore

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.