FX forecast for May 5
The European Central Bank (ECB) yesterday left the refinancing rate unchanged at 1 per cent. The statements made by the ECB president Jean-Claude Trichet were in general encouraging for the Eurozone countries, whose economies show the first recovery signs.
Reading between the lines, some analysts understood that the refinance rate could be lowered in the future.
In London, the rumors about the possible dismissal of Prime Minister Gordon Brown, which were vehemently denied on Downing Street, managed to shake the GBP/USD pair, which dropped from $1.6350 to $1.6080 in only two minutes. For a moment, the euro slid to $1.4070, but climbed later to $1.41 and traded at this rate throughout the day.
The support level for the euro now stands at $1.4050 (about 15.78 lei). According to Financial Brains portal, if this level is passed, the new level will be $1.3740. Otherwise, we will witness a rise.
EUR/MDL: The rates for the euro at currency exchange facilities will be the same as yesterday: 15.67 – 15.73 lei (bid) and 15.82 – 15.87 lei (ask).
USD/MDL: The US dollar will be traded at 11.09 – 11.13 (bid) and 11.18 – 11.23 (ask).
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