MDL/GBP: Further Upside In Short Term

August 2008 | Market Strategy

We have long maintained a positive view on the Moldovan leu versus its benchmark dollar and euro cross rate and recently highlighted our expectation for continued appreciation in the short term (see August 8 2008 Further Leu Appreciation). This view applies to other major leu crosses and we have turned our attention to the upside potential in MDL/GBP. Indeed, from a technical perspective, the Moldovan leu is looking very positive having recently propelled through a key resistance level at MDL19.50/GBP to trade at a multi-year high of MDL18.03/GBP on August 21. With limited resistance to be found beyond this point, the potential for further major gains is there.

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