Friday June 24, 2005 - 05:18:18 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: Message for Mr Buffet - 1.2000 has been broken, do you still want to sell USD
In afternoon Asian trade, we've seen the EUR break below 1.2000, but just as quickly, it was back up around 1.2040-50. Now that we have breached this magical level, the market will see it as just another number, and the gate has been opened for a move below 1.2000 in coming days, if not later today. Just something to keep in mind - over the last few Fridays we've seen New York push the market in one way or the other for 80-100 points once London has gone home. Saying that, i'm looking for EUR/USD to be capped around 1.2060-80, but if New York sells USD later today, we may see 1.2180. This would just allow us to sell at better levels, rather than representing a change in trend.
The euro fell to multi-month lows against the yen and sterling on Thursday, as deteriorating sentiment toward the currency amid an environment of depressed European interest rates prompted more heavy selling.
A fresh wave of speculation over a revaluation of the Chinese yuan also helped push the euro's exchange rate with the Japanese yen to a one-year low.
Federal Reserve Chairman Alan Greenspan and Treasury Secretary John Snow testified to the U.S. Senate on Thursday on U.S.-China economic relations, both arguing that a more freely floating yuan will help redress global economic imbalances. But their comments did not have a major impact on currencies.
U.S. Treasury debt prices swung lower on Thursday as investors booked profits after a two-day rally.
However, the givebacks fell short of erasing the week's gains, allowing benchmark yields to hold below 4 percent -- a testament to the market's stubborn strength.
U.S. stocks fell on Thursday as oil prices hit a record $60 a barrel, with lower outlooks from transportation and retail companies offering proof of oil's drag on profits. Oil prices surged nearly $2 on Thursday to a record $60 a barrel as dealers worried that continued strong demand growth would strain global production capacity.
Crude futures for August delivery rose $1.33 to settle at $59.42 a barrel on the New York Mercantile Exchange.
Today’s Economic Releases:
US: Durable Goods
Today’s Top Trades
· Sell EUR/USD strength towards 1.2060-70
. Sell GBP/USD around 1.8170-80
For more ideas send me an email, [email protected]
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."