Wednesday November 3, 2004 - 12:53:06 GMT
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CMC - www.cmcforex.com
Forex: Close race leaves market in volatile state.
The election race is almost predictably occupying the currency markets
right now, but with a disputed result remaining as a distinct possibility,
the dollar may well struggle to find any support in the near term. However,
current indications suggest that the Bush camp may declare victory in the
coming hours and this stands to initiate a degree of profit taking. The
uncertainty is leaving the market in a volatile state, with cable ranging
between 1.8320 and 1.8420 in recent hours. Currently the Pound is
retreating back towards the 1.8385 support level and a successful breach of
this could result in a move down towards 1.8325, but better than expected
PMI data released earlier today has without doubt left the door open for
the MPC to add another 0.25% to UK interest rates. Whilst this would seem
to be unlikely in the coming months, it remains a distinct possibility for
Q1 2005 and in turn should help minimise any cable downside. Near term
resistance would now seem likely at the recent high of 1.8450 with a move
above this unlikely to pass 1.8500. The Euro is also holding onto the
recent gains, although once again the ECB is not expected to tighten
monetary policy when they meet tomorrow. Again, a declaration by Bush may
temporarily expose the common currency on the downside, but look for
support at 1.26
Provided by CMC Group New York– Paul Jackson, Senior FX Dealer and Enis Mehmet, Head of Operations New York. For up to the moment FX market commentary, a 24 hotline is in place on 866-531-2604.
About CMC Group
CMC Group transacts over $1billion per day across its range of real-time online Foreign Exchange. It is one of the world’s leading online Foreign Exchange, Index and Equity Derivatives providers. Founded in 1989, CMC Group has operations in London, New York and Sydney. It is a member of the US NFA and ASIC in Australia. For further details on CMC Group visit www.cmcgroupplc.com.
DISCLAIMER: This forum and the information is provided as opinion and may prove to be inaccurate. CMC will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained herein. CMC Group do not provide investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a professional advisor is recommended.
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