FX forecast for June 25

Decisions by the European Central Bank (ECB) and the U.S. Federal Reserve influenced yesterday’s moves and today’s tendencies on the forex-trading markets, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. [EUR/USD] The ECB yesterday announced a 442 billion euro loan to banks carrying a 1% interest. This announcement, in combination with the moves by the Swiss central bank, which confirmed earlier forecasts and bought US dollars for francs, led to an immediate drop in the EUR/USD pair from $1,4130 to $1,3990. Over the Atlantic, it was decided at the Federal Reserve’s meeting to leave the key rate unchanged at 0.25 percent. However, the statements made after the meeting were made in tonalities which indicated confidence in the future of the American economy. While the Federal Reserve expects a slight inflation, this inflation is also expected to determine a potential increase in the refinancing rate and, consequently, enhance the attractiveness of the dollar. This news led to a further decrease in the EUR/USD pair, which dropped to $1.3890 by the end of the day. This morning the euro was trading at $1.3960, and Financial Brains forecasts a corridor of $1.3880 – $1.3990 for today. [EUR/MDL] At the Moldovan currency exchange facilities the euro will cost 15.50 – 15.55 lei (bid) and 15.65 – 15.70 (ask). [USD/MDL] 11.17 – 11.21 lei (bid) and 11.26 – 11.30 lei (ask). For further details visit www.fb.md