FX forecast for May 28 – Euro into free fall?

The international currency market was yesterday extremely volatile, with the euro swinging from $1.3980 to $1.3870 and back at least five times, Financial Brains director, PhD Sveatoslav Mihalache has told Info-Prim Neo. This morning, the euro traded at $1.3790. “Since yesterday evening, from 22.00, the euro has gone into free fall,” Mihalache said. Besides the bad news for the euro, specifically the discouraging report on the Germany’s GDP, the value of the European common currency yesterday was also influenced by good news for the U.S. economy and, by extension, for the dollar. The U.S.’s AAA credit rating remained unchanged, while the report on the secondary housing market prices showed that they have increased by 2.9% over the last quarter. Therefore, the currency market players decided to sell euros for dollars. The support level for the euro now stands at $1.3737. If this level is passed, the new support level will be at about $1.3500, Mihalache added. [EUR/MDL:] Today, the currency exchange facilities in Moldova will buy the euro for 15.32 – 15.40 lei and sell it for 15.52 – 15.60 lei. [USD/MDL:] Yesterday, the National Bank of Moldova intervened on the domestic market and purchased an estimated US$4-8 million from banks. The currency exchange facilities today will buy the dollar for 11.12 – 11.17 lei and sell it for 11.24 – 11.28 lei. The participants in the domestic currency market and the ordinary people will follow attentively the presidential elections today to see the results, Mihalache said. For further details, visit www.fb.md.