FX forecast for Mar. 24 – Euro hits year’s low

- [EUR/USD:] This morning the euro hit this year’s low – of $1.3405 – as the worst pessimists predict the European currency will further decline to reach $1.25, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. The traders started selling euros actively for US dollars and Japanese yen after some leaders of the European Union, including German chancellor Angela Merkel, stated that the upcoming summit would not produce any common decision on a bailout plan for Greece, where the situation remains strained. Furthermore, the traders started selling euros for Swiss francs, a safe haven, despite warnings that the Swiss central bank could intervene directly should the franc appreciate too much. However the Financial Brains think the euro will not decline so low, predicting instead the level of $1.32. [USD/MDL:] In contrast, the domestic market has been calm for the last few days and the dollar/leu rate has remained virtually unchanged. Yet the Financial Brains stick to the forecast that the dollar will eventually rise to 12.50 – 12.55 lei. The rates predicted for today are: 12.40 – 12.42 lei (bid) and 12.47 – 12.52 (ask). [EUR/MDL:] Around 16.65 lei (bid); around 16.85 (ask). For further details visit www.fb.md or www.financialbrains.eu