FX forecast for May 21

- [EUR/USD:] The euro is now rising as fast as it was falling lately, reaching today the $1.2670 level, just a couple of days after it had hit a four-year low, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. According to him, the growth is due first of all to interventions estimated at €9bn by the Swiss Central Bank, unsatisfied by a weak euro and a too strong franc. There are also reports about coordinated interventions by the European Central Bank with the Federal Reserve, which haven’t occurred officially yet. Even without any intervention, the euro had no further room to decline due to being more than oversold. According to the Chicago Board of Trade, the euro selling positions recently hit an all-time record high. “Nothing can fall below ground level”, commented Mihalache. Whether the euro rises further or not depends on the key-level situated at $1.2720. If it succumbs today, conditions will be created for the common currency to reach the $1.31 mark. [EUR/MDL:] Changes will be visible in Moldova as well, with bid rates estimated at above 16 lei and as rates around 16.20 lei. [USD/MDL:] The National Bank yesterday continued interventions, instructive rather than sizeable, to warn investors not to overestimate the dollar. In this period dollar purchases are not recommended as the rate of the American currency is expected to dropt to 12.55 – 12.60 lei by the start of the next month. Today the dollar will buy at 12.72 – 12.75 lei and sell at 12.83 – 12.87 lei. For further details visit www.fb.md or www.financialbrains.eu