Tuesday January 25, 2005 - 10:46:06 GMT
Share This Story
DailyFX.com - www.dailyfx.com
FOREX: US OPEN MARKET POINTS 01-25-05
Euro Finds a Bid
The slightly lower than expected Italian Consumer Confidence numbers haven’t made much of an impact on euro bulls, as the unit bounced like a rubber ball from the 1.3000 low reached during the Asian session to trade materially higher in European markets. Italian Confidence sank for the third month in a row printing 103.3 versus 103.5 during last month, as consumers retrenched weighed by persistent employment worries.
However, traders appear to have dismissed the latest report, speculating that it expressed lagging sentiment, especially in light of yesterday’s strong Italian Retail Sales. In a classic case of “watch what I do, not what I say”, dealers took comfort in the fact that while Italians were uncertain about the future they continued to consume in the present.
Consumer Confidence will be much on the minds of market participants as we enter the US session today when the Confidence Board monthly survey is scheduled to be released at 15:00 GMT. Last Friday’s University of Michigan numbers came in low at 95.8 vs. 97.5 expected. The consensus for today is for slightly lower numbers and given the creeping rise in oil prices along with brutally cold weather in Midwest and East we have no quarrel with majority opinion that US consumer sentiment may have declined. For the FX market the question going forward is whether the euro will have enough momentum to take out last weeks high’s of 1.3117 if the number reports as projected. We continue to believe that while euro may have found its lows for the near term, trading for the rest of the week is likely to be lackluster and range bound as the markets awaits FOMC and G-7 meetings.
FX Spot Overnight
- EUR snaps back from a quick test of 1.3000
- JPY softer at 103.10 on EUR/JPY buying
- GBP very tight range at 8790 awaiting tomorrow’s MPC notes
- CHF like euro finds a bid
- 14:00GMT – (09:00 AM EST) CAD Bank of Canada Rate (Jan 25) Expected 2.50%Previous 2.50%
- 15:00GMT – (10:00 AM EST) USD Consumer Confidence Jan Expected 101.5 Previous 102.3
- 15:00GMT – (10:00 AM EST) USD Existing Home Sales Dec Expected 6.80M Previous 6.94M
- 17:30GMT – (2:30 PM EST) USD Fed's Hoenig speaks on monetary policy
- 23:30GMT – (06:30 PM EST) USD ABC Consumer Confidence (Jan 23) Expected --- Previous -11
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."