Thursday November 18, 2004 - 12:45:48 GMT
Share This Story
CMC - www.cmcforex.com
Forex: Traders see dollar slide with little likelihood of Central Banks' intervention.
The dollar continues its downward run against major world currencies as
> traders remain convinced that central banks can do little to offer any
> significant support in the near term. As a result, we saw Sterling make a
> temporary move past the long-standing resistance point of 1.8617 during
> yesterday’s trade, although this push proved to be short-lived. Worse than
> expected UK retail sales data combined with another fall in mortgage
> borrowing is underlining the sentiment that UK interest rates have probably
> peaked and although this won’t mark an end to all Sterling appreciation
> against the dollar, it will certainly serve to cool the market. Another
> move past 1.8617 could lead to resistance around 1.8650, whilst on the
> downside, expect to find support at 1.8540, 1.8515 then significantly
> around 1.8450-60. The Euro however continues to appreciate apace.German
> PPI data released this morning showes a month-on-month increase of 0.9% and
> this is again fuelling inflation fears. Whilst the number has doubtless
> been boosted by high oil prices, there’s no doubt that this will impact
> output prices in the near term and as such the first rate hike by the ECB
> is getting ever closer. The common currency is again trading above 1.30 and
> plotting a course for another all-time high, with short term resistance not
> expected before 1.3080 then 1.3125. On the downside, psychologically 1.30
> should hold, but look for initial support in the 1.2990-1.3010 range,
> followed by 1.2950.
Provided by CMC Group New York– Wayne Roworth, 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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."