Tuesday October 5, 2004 - 10:19:28 GMT
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FOREX: US OPEN MARKET POINTS 10-05-04
Business as Usual?
No positive surprises from Euro-land tonight as oil woes weighed heavily on European services sector and growth slowed to the lowest level of the year. The German, French and Italian PMI service surveys all reported worse than expected numbers as stubbornly high oil prices curbed consumer spending in the 12 nation region.
The depressing effect of oil on world demand is also hurting German business hiring. Unemployment in Germany increased by 27K from 10K expected registering seven consecutive months of unemployment increases and pushing German unemployment rate to its highest level since 1999.
The lackluster economic data offered little solace to euro bulls who were already nursing wounds from yesterdays 150 point drubbing. With little intrinsic reason to propel it higher, the euro may bounce back only slightly against the greenback unless the US ISM Services report due 14:00 GMT reports materially worse than 59 expected. In their well familiar battle for the “least worst”, the pair should continue their range bound dance for the near term.
FX Spot Overnight
- EUR meanders between 2270-2290 after soft eco data
- JPY takes out 111 as Nikkei pauses
- GBP more selling to 7820 as PMI data lowest since June 2003
- CHF as quiet as euro
14:00GMT – (10:00 AM EST) USD ISM Non-Manufacturing m/m (Sep) Expected at 59, Previous 58.2
14:00GMT – (10:30 AM EST) US Fed's Greenspan speaks on banking in NY
17:00GMT – (1:00 PM EST) US Fed's McTeer speaks on US econ in Austin
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