GTQ: In Need Of A Sugar Rush

April 2006 | Currency Forecast

The quetzal has been lacking in momentum since the beginning of the year. It currently stands at GTQ7.5720/US$, only marginally stronger than the year's open of GTQ7.5800/US$. The unit has start to edge higher since the end of March, and it eyeing massive resistance at GTQ7.5700/US$. Strong remittance inflows and improving economic conditions, as well as our expectations of further monetary tightening in coming months, could propel the unit higher, although the external accounts are far from healthy at this stage. A breach of that level could set up multiyear gains towards GTQ7.0000/US$, although we are unconvinced that the quetzal

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