Monday January 3, 2005 - 11:49:25 GMT
Share This Story
DailyFX.com - www.dailyfx.com
FOREX: US OPEN MARKET POINTS 01-03-04
PMI Data Boosts the Euro
A gain in Euro-zone PMI Manufacturing survey after 5 straight months of declines, helped rally the euro from an early morning sell-off in Asia to bring it right back to pre-holiday levels of 1.3550. Spurred by a healthy jump in German PMI numbers to 51.7 from 50.8 expected, the PMI numbers for the whole Euro-zone printed at 51.4 versus 50.9 projected and helped reverse a 150 point slide in the pair amidst very thin trading conditions.
With both Tokyo and London markets still closed for holiday the dollar bulls quickly pushed EUR/USD lower hoping to extend Friday’ s fall from the 1.3600 figure. The unit hit a low of 1.3380 as dealers bought back last week’s shorts offered out at all time highs, but then quickly changed course when Euro-zone manufacturing data showed that euro’ s recent rise against the dollar only had a limited impact on the regions crucial export sector. It appears that lower oil prices provided far more important competitive value to European manufacturers than any negative drag incurred from a higher euro.
Today’s US Manufacturing data may turn prices once again if, as expected, ISM manufacturing rises to 58.5 from last month’s 57.8 level. Before we left we wrote, “A test of the 1.3600 is quite probable before the year end in order to shake out all the trend faders still looking to catch the turn in the pair.” Having tested that zone several times last week we are now likely to range and digest the latest up-move as focus turns to Friday’s NFP report once dealers return to the trading desks.
FX Spot Overnight
- EUR retraces almost all of its early session loses after good PMI data
- JPY gives back the early session spike as markets stay closed for holiday
- GBP breaks through the 9100 figure but recedes below
- CHF full turn around from 1500 back to 1400 on Euro-zone strength
- 15:00GMT – (10:00 AM EST) USD Construction Spending m/m (NOV) Expected 0.5% Previous 0.0%
- 15:00GMT – (10:00 AM EST) USD ISM Manufacturing (DEC) Expected 58.5 Previous 57.8
- 15:00GMT – (10:00 AM EST) USD ISM Prices Paid (DEC) Expected 72.0 Previous 74.0
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."