Friday November 19, 2004 - 12:44:20 GMT
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CMC - www.cmcforex.com
Forex: Will Greenspan show a new hand in Germany?
The dollar continues to grind lower as comments from the Central banks
again suggest that intervention is not the way forward and instead the
markets should decide on what represents fair value. After the high profile
runs on currencies in recent years, this strategy perhaps is of little
surprise, but traders will be closely watching the comments of Greenspan
and Trichet at today’s meeting in Frankfurt to see that there’s no
indication of this policy changing. Additional data released today has
shown once again that the UK housing market is cooling and as a result, the
diminished prospect of further rate hikes will drag on Sterling. Cable is
still making some headway on the back of the weak US situation, but look
now for resistance to come in quite tightly packed at 1.8620 then 1.8640. A
successful move past here may result in a renewed attempt on the recent
high of 1.8765, whilst on the downside, look for support at 1.8515, 1.8465
and 1.8430-35. The Euro also continues to test the all-time highs against
the greenback and has found some support around the trend line at 1.3005.
Any further exposure on the downside could result in a move towards
yestreday’s low at 1.2930 then 1.2915, with a sustained breach of this
level opening up the way towards 1.2850. On the topside however, look for
resistance at 1.3020 then at the all-time high of 1.3075.
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.
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