Monday September 12, 2005 - 05:21:19 GMT
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Tricom Futures and Foreign Exchange -
Forex: A big week of data which could set the USD's direction for the rest of 2005
The yen climbed to a two-week high against the euro on Monday after Prime Minister Junichiro Koizumi's party won a landslide victory in Japanese elections, spurring hopes for more foreign buying of Tokyo shares.
The euro tumbled against the yen as Koizumi's resounding win contrasted with investor uncertainty over the outcome of Germany's own upcoming election.
The single currency's slide helped to lift the dollar across the board, especially against European currencies, and brought it back versus the yen to levels little changed from late U.S. trade on Friday.
Alot of the USD strength came from the weakness in the EUR/USD, which hit stops under 1.2370. The move was further exaccerbated when a 1.2350 options position was hit. On the otherside, the USD/CHF broke back above 1.2480, currently trading around 1.2520.
The USD/CHF crossed back above the EUR/USD on Thursday, and managed to close in this position on Friday, thereby suggesting further upside for the USD/CHF, and further softness for the EUR/USD. A big week coming up in terms of economic data, which may well set the mood for the USD for this last quarter of 2005.
Today’s Economic Releases:
Today’s Top Trades
· Buy USD/CHF around 1.2460-80, with a 50 point stop
. Sell EUR/USD around 1.2350-60, with a stop above 1.2400
For more ideas send me an email, [email protected]
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