Tuesday November 16, 2004 - 13:08:22 GMT
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CMC - www.cmcforex.com
Forex: Rice appointment not seen as Dollar friendly.
Some brief respite for the Dollar yesterday has given way to renewed
weakness across the board as the prevailing downtrend maintains the upper
hand. The perception that the US are at ease with a gradually declining
Dollar only reinforces downward pressure. News that National security
advisor Rice has taken over from Colin Powell as Secretary of State is not
Dollar friendly news either. She has previously advocated unilateralist US
action in contrast to Powells more diplomatic stance over Foreign issues.
On the data front, today sees the release of the US Treasury`s monthly
portfolio flow data for September at 14.00gmt. The last figure of $59bln
was enough to cover the monthly trade deficit of $51.6bln.
Sterling remains on the soft side against a range of currencies due to the
perception UK rates have peaked. The latest RICS report highlighted a more
gloomy picture with regard to house prices with the survey deteriorating to
-41 from -30. This mornings reported rise in Oct CPI inflation to 1.2% will
have little effect on the market. Tomorrow sees the release of September
average earnings and the October claiment count unemployment to be followed
by October retail sales on Thursday. Stronger economic data is required to
give the pound a lift. Against the Dollar, Sterling continues to grind
slowly higher with key support at 1.8375/1.8435 containing the downside
while 1.8615/20 needs to be cleared to open up a move towards 1.8720/70.
Provided by CMC Group New York– Steve Hatton, 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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