Monday September 19, 2005 - 05:40:37 GMT
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Tricom Futures and Foreign Exchange -
Forex: The German Election's over, and the EUR falls, now for the FOMC
The US dollar was trading steady against the major currency pairs but remains supported ahead of an expected US rate hike following the Federal Open Market Committee meeting tomorrow.
The dollar will build on gains against the euro as traders deserted the single European currency following political uncertainty in Germany from Sunday's elections
Dealers said the expected 25 percentage basis point rate hike by the Federal Reserve tomorrow will keep the euro and yen under pressure
Trading was thin because of public holidays in key Asian markets
The German election has come and gone, and while it's close, it appears that Schroder may sneak in, but the EUR has sold-off heavily today, brekaing below support at 1.2150.
I hold my view from last week, that this 1.2000-1.2200 area is good buying territory, and as such, continue to favour going long here, with wide stops. Conversely, look to sell USD/CHF around this 1.2800 level.
With no major economic numbers due out today, and the FOMC tomorrow, looking for a fairly rangebound session, particularly after this first hour or so of London, and once the guys work out they've sold the EUR down enough.
Today’s Economic Releases:
Today’s Top Trades
· Buy EUR/USD around 1.2110-1.2080
. Sell USD/CHF around 1.2830-50
For more ideas send me an email, [email protected]
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