FX forecast for May 5 – Euro drops under $1.3

- [EUR/USD:] The ‘peripheral’ countries of the euro zone continue producing pressure on the EUR/USD pair and although Spain and Portugal officials have stated that at this stage they don’t need aid from the EU and IMF (which in the case of Greece hasn’t saved it from mass protests), those statements were treated with skepticism by the actors of the European markets, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. Yesterday the euro witnessed a sharp fall under the $1.3 mark to $1.2950, setting a new low of this year. The Financial Brains think that in the next few days we will see a correction. Resistance levels: $1.3050; $1.3130. Support levels: $1.2930; $1.2870. [EUR/MDL:] The sharp fall of the European currency was immediately felt on the domestic market, where currency exchange facilities stopped buying euros from the second half of the day. Today the currency exchange facilities will buy euros at 16.30 – 16.35 lei and sell them no lower than 16.60 lei (as opposed to what should have been the ‘real’ rate of 16.45/50 lei) to somehow dilute yesterday’s losses. [USD/MDL:] The dollar is trading in small amounts at 12.65 – 12.66 lei on the interbank market. The prediction that the dollar will drop to 12.48 – 12.50 lei in the next few weeks remains valid. Rates predicted for today: 12.59 – 12.63 lei (bid), 12.68 – 12.73 lei (ask). For further details visit www.fb.md or www.financialbrains.eu