Thursday November 11, 2004 - 12:50:49 GMT
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CMC - www.cmcforex.com
Forex:Dollar visits old highs.
Nov.11th 0600EST- Yesterday the Euro posted a new all time high but stalled at the psychological 1.3000 zone and has since retreated back below the old 1.2925 /30 all time high. A combination of factors have introducing some uncertainty on the re-visit to the old highs. The latest round of verbal protestations from EU officials, a smaller US deficit figure, the quarter percent US interest rate increase (another hike likely in December) and the soft economic backdrop in the Euro. Another example of this was todays weaker than expected German annualised Q3 GDP figure of 1.3% (expected 1.5 /1.7%). Coupled with US Dollar technicals needing to unwind from oversold
levels we can expect atleast some short term consolidation for the Euro. 1.2820/50 is key near term support. Sterling posted a sharp reversal yesterday, initially posting new multi-month highs of 1.8615/20, before slumping back below old resistance at 1.8450/1.8520 zone. A dovish Bk of England inflation report reinforced the belief that UK interest rates may have already peaked unlike the US, and this has further eroded Sterling`s attraction with the currency continuing to post declines against a number of currencies. If Cable fails to hold 1.8450/90 supports it risks a test of 1.8400 with risk towards 1.8300/25.
Provided by CMC Group New York– Leandra McPhilips, 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.
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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.
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