Tuesday June 14, 2005 - 02:58:54 GMT
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Tricom Futures and Foreign Exchange -
Forex: The EUR will trade 1.2000, before it trades 1.2400
The EUR slide continues unabated. As we approached 1.2000 during NewYork trade, the short-covering began. And that's all this 100 point rally to 1.2150 is. It's hardly new longs being established. Given that we are approaching 1.2000 far quicker than anyone thought, i think we can expect this move to overshoot, meaning that 1.1800-1.1900 may bottom out this slide.
U.S. Treasury debt prices slipped on Monday as investors worried that key upcoming data on retail sales and inflation might suggest the recent rally in bonds was overdone.
In particular, traders were nervous that any unexpected uptick in price pressures or unforeseen strength in consumer spending might prompt investors to rethink the logic of holding onto safe-haven government debt.
Either event would give the Federal Reserve plenty of room to continue raising interest rates, thereby dashing the hopes for a pause that had fuelled the month-long rally.
U.S. stocks advanced on Monday, with shares of Morgan Stanley climbing after news that the investment bank's embattled chief executive will step down.
Today’s Economic Releases:
· US: PPI
. US: Retail Sales
Today’s Top Trades
· Buy USD/CHF on dips to 1.2690
. Sell EUR/USD on strength to 1.2130-40
. Buy GBP/JPY around 197.60-70
. Buy AUD/NZD around 1.0760-70
For more ideas send me an email, [email protected]
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