FX forecast for Mar. 2

- [EUR/USD:] Yesterday’s statements by German Chancellor Angela Merkel influenced the course of the European currency, encouraging it to test the lower limits, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. Somewhat breaking a ‘non-involvement’ policy in the currency market, Merkel said she didn’t see any problem with the depreciation of the euro. Immediately after those statements, the euro again tested the support level at $1.3420/50, stopping at $1.3459. Currently it trades at $1.3540, as the 4h and 1d graphs indicate that the depreciation could continue up to $1.3360/70. The traders are expecting the outcome of the meeting scheduled for Friday between Angela Merkel and Greek Prime Minister George Papandreou, where Greece is supposed to receive assurances for assistance with its budget deficit problems. While the expected aid of 30 billon euros could alleviate those problems, it remains to be seen if it can remove the causes as well, thinks Sveatoslav Mihalache. Thus, Financial Brains will take a chance and purchase euros for dollars at $1.3440, with a stop-loss slightly below $1.34, in hope that the euro will eventually rise. [USD/MDL:] While last week the dollar strengthened on the domestic market at levels above 12.80 lei, at the start of this week it has seen a slight depreciation against the leu. It is recommended to refrain from buying dollars at rates higher than 12.80 lei. Today foreign exchange facilities will buy dollars at 12.76 – 12. 78 lei and sell at 12.84 – 12.86 lei. [EUR/MDL:] 17.28 – 17.31 lei (bid) and 17.35 – 17.40 lei (ask).