[COLOR="Green"]NTT SmartTrade: weak US growth prospects[/COLOR]
The greenback declined for the first time in 3 days trading versus the single currency affected by the concerns about US economic recovery prospects.
According to the economists’ survey conducted by Bloomberg, the index of the Institute for Supply Management-Chicago Inc. fell from 59.7 in May to 59 this month. Analysts at NTT SmartTrade Inc. claim that the rebound of American economy seems to be weak that is very negative for US dollar.
US currency weakened from $1.2188 in New York yesterday to $1.2219 per euro at 6:48 a.m. in London.
[COLOR="green"]Commerzbank: pound's growth won't last long[/COLOR]
Analysts at Commerzbank AG claim that the advance of British currency won’t last long as the spending cuts performed by the country’s government will have a negative impact on UK’s economic growth. As a result, the Bank of England would have no other way but to keep rates at the minimal level.
The specialists underline that sterling was supported last week by emergency budget that helped to increase investors’ confidence in pound and the fact that one member of the central bank’s Monetary Policy Committee voted for the rate hike that provoked the expectations of possible rates’ hike. Commerzbank believes that such speculation came untimely and points at the current austerity measures performed by British government.
As a result, the strategists expect that pound’s decline will begin when the country’s central bank will confirm their assumptions.
[COLOR="green"]Barclays Capital: clients bet on euro's decline[/COLOR]
The survey performed by Barclays Capital among its clients showed that the single currency will keep declining versus the greenback in the third quarter of this year although it’s not likely to collapse.
The majority of respondents believe that euro will be trading within the downtrend, while only 4% think that the European currency will gain. The idea of euro’s collapse is shared by less than 10% of interviewed. Most clients of Barclays Capital prefer light positions.
[COLOR="green"]UBS AG: EUR/CHF may fall to 1.30[/COLOR]
Analysts at UBS AG believe that Swiss franc may strengthen versus the single currency and the pair EUR/CHF is likely to fall below 1.30. Such forecast is based on the assumption that investors will increase their demand for franc as a safer currency and Switzerland’s central bank won’t intervene to the market.
The fact that Swiss national bank isn’t selling the national currency means that franc can appreciate to the level that will harm the country’s economy.
Franc rose by 3.9% versus euro since June 17 when the SNB announced that deflationary risks have almost vanished.
[COLOR="green"]On-line analytics from FBS always is available on: http://www.fbs.com/analytics/news_markets[/COLOR]