Further Gains For MGA/US$ Ahead

April 2007 | Market Strategy

The Madagascar ariary continues to sharply trade higher in line with the bullish view we have been promoting since the beginning of the year. Currently trading at MGA1835/US$, the unit has made 8.7% gains year-to-date. While remain long-term bulls, the extent of recent gains suggests a possible short-term retracement. The divergence of the unit from its 14-month moving average is a key indicator for us here, and highlights the risk of a short-term move lower. However, we are confident that the unit will see further gains over the coming years and see potential for the unit to trade back toward

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