Corporate foreign exchange news

Foreign exchange news: Euro to fall against yen

Friday, 09 October 2009 09:34:28 GMT

The euro will dive to a three-month low against the euro, technical analysis from Bank of Tokyo Mitsubishi suggests.
Masashi Hashimoto, a senior analyst in Tokyo at the foreign currency unit of Japan's biggest publicly traded bank, told Bloomberg that both the five and 21-day moving averages are in a downward trend, while daily momentum indicators also look bearish for the euro.
"The euro is shifting to a downtrend. If it falls through the 200-day moving average, that would be a big turning point in terms of trend," he predicted.
Although the euro has remained above the 200-day moving average since May, Mr Hashimoto predicted that the currency could fall as far as 124.39, its lowest level since April 28.
Meanwhile, in a separate interview with Bloomberg, Marc Chandler, global head of currency strategy at Brown Brothers in New York, said that the yen will continue to weaken against the dollar as the boost provided by Japanese companies' repatriation of foreign earnings begins to wane.ADNFCR-2522-ID-19400968-ADNFCR
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