Wednesday November 17, 2004 - 15:26:06 GMT
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Forex:Euro/Dollar continues to test 1.305 resistance.
The dollar continues to slide against many major currencies as the market
struggles to see any quick solution to the US trade gap issue. Although
indications are now suggesting that the deficit is starting to contract and
lower oil prices will doubtless help this process further, suggestions from
the Fed that the blame actually lies with overseas economies not expanding
quickly enough could be construed as being somewhat short sighted. Although
cable continues to edge higher, significant appreciation here is being
tempered by the fact that the Bank of England’s interest rates now seem to
have peaked. We’re now testing the recent high at 1.8617 and a successful
breach of this level should pave the way for a move towards 1.8670, with
further resistance expected at 1.8740. On the downside, look for support at
1.8505-10 and 1.8450. The Euro also continues to gain ground, although the
prospect of ECB rate hikes in the longer term should ensure the common
currency outperforms Sterling. We’re now trading above the key 1.30 level
and are testing resistance at 1.3050. Any sustained move past this level
should take us on towards 1.31, whilst on the downside, expect to find
support around the 1.2950 and 1.2915 levels.
Provided by CMC Group New York– Stuart Scrase, 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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