Forex review for April 28 – Euro hits new low

- [EUR/USD:] The euro hit yet another low this year – of $1.3150 – after Standard & Poor’s yesterday downgraded Greece's and Portugal's credit ratings, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. Greece bonds were rated 'junk' as its credit rating was lowered to BB+, while Portugal's sovereign rating was downgraded two steps, from A+ to A-, with a negative outlook. Portuguese Finance Minister Teixeira dos Santos warned Greece's problems could soon spread over other EU countries as well. The euro plummeted on these news from $1.3390 to $1.3150, easily breaking what was once a rather solid support level situated at $1,3220. Now, according to the Financial Brains (FB), a strong support level is taking form around the $1.3110/20 mark, which is expected to resist bearish attacks. The FB will take a chance to buy euros at this level, but will watch with great attention the developments taking place over the Atlantic, where the monetary committee of the Federal Reserve is to decide upon its key bank lending rate, which is currently 0.25 percent. And while it's unlikely that it will change, analysts are already talking about a potential rise in the key rate at the next meeting of the committee. If the Federal Reserve does it today, in a surprise, the $1.3110/20 level would not be so strong after all. [USD/MDL:] The domestic currency market experiences 'total dormancy', as there is virtually no offer and demand for dollars on the interbank market; the dollar is priced at 12.59/60 lei in those few instances of trading. According to Sveatoslav Mihalache, there are eight chances in ten that the dollar would follow a downward trend for a short period of time, up to 12.48 – 12.53 lei. “It very much depends on the developments of the negotiations between the Moldovan authorities and the IMF this week”, added Mihalache. For further details visit www.fb.md or www.financialbrains.eu