Last week didn’t have any special events for essential moves of currencies. The ECB completely refuted rumors about limitation of the profitability growth of peripheral obligations. Officials couldn’t give any clear comments about the further destiny of Greece and the data from Germany confirmed presence of negative trends in its economy. Market participants are waiting for radical actions from the ECB next week. Japan reconsidered its economical evaluation to decline for the first time in last 10 months. The neutral tone of comments about the US economy within the framework of the Beige Book lowered the probability of the monetary policy easing. In the beginning of the week a lot of analysts were sure that the head of the FRS would prepare the world for the QE3 realization, but he didn’t live up to expectations of the markets and repeated the content of the FOMC protocols. Nevertheless Bernanke has left hopes for QE3 in his speech at the Jackson Hole on Friday. He also added that high unemployment rate was the main concern.
The Dollar tends to remain pressured while the market will be looking forward to the ECB Meeting this week (Sep 6 2012). The Euro (1.2579) can break its Resistance at 1.2600 and rise to 1.2730 before the ECB Meeting. Support is around 1.2500 and 1.2460.
The Euro-Yen (98.43) is trading in the range of 97.70-99.00. Overall bias is bullish and the goal for an upward trend is 100 and above.