Monday June 27, 2005 - 05:16:14 GMT
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Tricom Futures and Foreign Exchange -
Forex: It's Make or Break Week
This could be the week we see the next bg move in the USD, and/or the EUR. Throughout the week we have various European economic data which will either indicate the slowdown has stabilised, or a further deteriation, and thereby prompt the ECB to cut rates sooner than they may want to. In the US, we have some consumer confidence numbers, and Chicago PMI, coupled with the ISM on Friday. But more importantly we have the FOMC meeting on Wednesday/Thursday, with an announcement expected on Thursday afternoon GMT. And, just to throw another spanner in the works, we hear tomorrow marks the expiration of some rather large 1.2000 EUR/USD options, removing another hurdle for a break below 1.2000.
The USD slipped from multi-month highs against major European currencies on Friday in largely technical pre-weekend trading.
U.S. Treasury debt prices rose strongly on Friday, building on gains from earlier in the week after a report on May durable goods orders heightened fears of slower economic growth that could halt the Federal Reserve's program of rate increases sooner rather than later.
In addition, a flight-to-safety bid has developed in recent days as equities prices have tumbled. The Dow Jones industrial average fell on Friday to its second consecutive triple-digit loss, spooked by high oil prices.
U.S. stocks fell sharply on Friday with the Dow Jones industrial average enduring its second straight triple-digit decline as oil prices rose another 42 cents a barrel.
August crude oil futures in New York settled at $59.84, the highest closing price for a leading-month futures contract. It briefly touched Thursday's record price of $60 again in electronic overnight trading.
Today’s Economic Releases:
. GER: IFO (June)
Today’s Top Trades
· Sell EUR/USD strength towards 1.2135-45
. Buy USD/CHF around 1.2705-1.2690
. Buy USD/JPY around 109.05-108.95
For more ideas send me an email, [email protected]
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