Wednesday September 28, 2005 - 05:55:53 GMT
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Tricom Futures and Foreign Exchange -
Forex: Sideways movement continues
The US dollar edged lower against major currencies, with the unit easing against the yen on active selling from Japanese exporters, although the greenback's broadly firm tone remains intact given expectations for continued interest rate hikes in the US. The appetite for the US currency has been enhanced by recent comments from a stream of US Federal Reserve officials including chairman Alan Greenspan who have intimated that the Fed is likely to continue with its cycle of modest rate hikes amidst worries about a pickup in inflation. The inflation concerns have overriden worries about the impact of recent hurricanes which are seen putting only a temporary drag on the US economy.
Overnight, the US Conference Board consumer confidence survey for September showed the index fell to a two-year low while sales of new US homes dropped sharply in August.
US Durable Goods out later today, but i think most of the attention will be on the UK today with GDP and Current Account due out at 08:30GMT. The market has been focusing on soft economic data out of the UK recently, so anything slightly above expectations could see the Sterling rebound strongly, back above 1.7700.
The EUR remains susceptible to the downside, and until we see a move back above 1.2100 the downtrend remain intact. For today, the 1.2050-60 level will offer some resistance, while the 1.1980 area remains a target for the sellers.
Today’s Economic Releases:
UK: Current Account
US: Durable Goods
Today's Top Trades
. Sell EUR/USD around 1.2050-60, with tight stops above 1.2085
For more ideas send me an email, [email protected]
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