Monday October 17, 2005 - 07:38:37 GMT
Share This Story
CMC Markets - www.cmcmarkets.com
Dollar continues to ease ahead of mid-week data.
October 17th - The dollar continued to retreat in early Asian trade although Friday’s profit taking does now seem to be running out of steam. With little on the economic calendar through today’s session, fundamental direction is likely to prove difficult to come by so instead it seems as if the technicals could play a more significant role although key psychological support levels – 114 on the Yen, 1.77 on cable and 1.21 on the Euro have already been tested. Overall there still seems to be little to detract from the greenback in the longer term, especially so long as the FOMC continues to preach the mantra regarding tighter monetary policy to control inflation as we move on into 2006. With interest rates looking to remain on hold for some time in the other major economies the diverging yield curves stand to provide this line of dollar support and although we may see further sporadic profit taking some days yet, PPI on Tuesday and the beige book on Wednesday certainly could provide the direction the market is looking for, driving the dollar higher once again as the week continues.
Paul Jackson and Enis Mehmet
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."