Wednesday August 17, 2005 - 05:55:18 GMT
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Tricom Futures and Foreign Exchange -
Forex: The EUR's just about ready for the next push higher.
The US dollar was trading firmer against major currencies despite mixed US economic data overnight which gave little reason for the Federal Reserve Board to deviate from its "measured pace" of tightening monetary policy. July inflation data was mild, but when combined with Monday's positive capital inflow data, it gave traders an excuse to buy the dollar which had been under pressure as the euro found favour.
The US consumer price index topped forecasts with a 0.5 pct rise last month in July, but the closely tracked core rate, which strips out volatile food and energy prices, came in below the target forecast with a 0.1 pct gain
Already today, the EUR/USD had another go at cracking above 1.2380, but while this second attempt was unsuccesful, be wary that it's only a matter of time, and as such, I am now looking for levels at which to go long. Possibly around 1.2280-1.2300.
The highlight for today appears to be the BOE minutes, due out at 8:30GMT. The market's looking for some sort of clue as to any further rate cuts this year, but I suspect we will see comments suggesting no further rate cuts this year, and suggestions of concerns about consumer spending and housing getting out of control again. I like the GBP/USD as a buy around 1.8050
Today’s Economic Releases:
UK: BOE Meeting Minutes
Today’s Top Trades
· Buy GBP/USD around 1.8050, with a stop below 1.7990
. Buy EUR/USD around 1.2290-1.2300, with a stop under 1.2250
For more ideas send me an email, [email protected]
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