FX forecast for May 17 – Euro drops to 4-year low

- [EUR/USD:] The euro has dropped this morning on the Asian segment of the global market to $1.2230, a level that hasn’t been seen since April 2006; currently the euro is trading at $1.2270, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. Investors continue dumping the common currency as ‘risk assets’ on mounting worries related to the economic woes of the European Union ‘peripheral members’ and a possible contagion that could affect other EU countries. It is difficult now to predict the course of the common European currency and it is possible to name just one support level – $1.2230. On the opposite side, there are at least three resistance levels – $1.2310; $1.2370; $1.2410. [EUR/MDL:] Bid rates for today 15.53 – 15.58 lei; ask rates 15.83 – 15.88 lei. [USD/MDL:] With the dollar trading on the interbank market at levels close to 12.63 lei, the prediction that we will see it drop to 12.45 lei by the end of the month looks more and more unlikely. The Financial Brains reckon this appreciation of the dollar could be catalyzed by lower oil prices on the global markets, an opportunity for importers to tank up at advantageous prices, which could create a higher demand for dollars internally. Today the dollar will buy at 12.62 – 12.64 lei and sell at 12.75 – 12.78 lei. For further details visit www.fb.md or www.financialbrains.eu