Wednesday February 16, 2005 - 19:48:11 GMT
Share This Story
Forex.com - www.forex.com
DOLLAR STRUGGLES TO MAINTAIN GROUND
The Dollar mostly lost ground today despite some better than expected data and mildly hawkish comments from Fed Chairman Greenspan. US housing starts rose at an annual rate of 2.159 mio in Jan., stronger than the 1.925 mio rate expected. Building permits were also stronger; registering a 2.105 mio annual rate vs. an expected rate of 2.0 mio, suggesting the US housing sector remains buoyant. January industrial production was weaker than expected, coming in unchanged vs. an expected gain of 0.3% and capacity utilization declined to 79.0% from 79.3%. In his senate testimony, Greenspan painted a ‘steady-as-you-go’ picture of the US economy’s outlook, saying the US economy has ‘firmed’ and inflation remains low. Greenspan forecast a 2005 GDP growth rate of 3.75%-4.0% and indicated core inflation should stay between 1.5%-1.75%. On the direction of US interest rates, Greenspan clearly indicated that rates will move higher as the FOMC continues to remove excess accommodation, but he declined to specify what constitutes a ‘neutral’ Fed funds rate. Greenspan also noted that businesses remain cautious and that this may impede job growth. In other currency action, the JPY remained weak against the USD and on the crosses after Japan reported 4Q GDP fell by 0.1% QoQ vs. an expected rise of 0.1%, and annualized 4Q growth declined by -0.5% vs. an expected gain of 0.7%.
Dollar/Jpy after getting through trend line resistance of 105.10/20 we peaked at 105.75. Dollar/Jpy is above all its 30 120 and 200hr moving averages. There is trend support now at 105.10/20 and below that at 104.90/105.00 in the near term. There is resistance at 105.75/85 and 106.20.
GAIN AN EDGE
We look to buy Dollar/Jpy on a dip to 105.05/15 and again 104.90 with a stop at 104.60 and a take profit of 105.75/95
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."