Wednesday October 19, 2005 - 06:21:02 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: The Euro's on the edge of an abyss
The US dollar was firmer against major currencies in midday trade on fresh expectations for further US rate hikes in the wake of new economic data showing a sharp uptick in inflation. In addition strong capital inflows into the US in August further underpinned the greenback's strength.
While dollar's underlying bullish tone remains intact, the US unit is likely to undergo periodic bouts of profit-taking, as the market awaits fresh trading leads.
The USD bullish tone remains, even at these heady heights. While we can expect small pullbacks, the market is looking for a retest of the area under 1.1900 in the EUR/USD , and above 1.3100 in USD/CHF. Today's Beige Book will be looked at by the market for further evidence of the Fed's thoughts on the economy and the possibilities of further rate rises this year.
Aside from this, the market will be largely rangebound, following yesterday's large moves, and the fact that many accounts would have been wounded, and are now waiting for some sort of direction before re-entering the market.
Today’s Economic Releases:
UK: BOE Minutes
US: Housing Starts
US: Beige Book
Today's Top Trades
- Sell EUR/USD around 1.1940-50, with stops above 1.1980
- Sell GBP/USD around 1.7510, with stops above 1.7550
For more ideas send me an email, [email protected]
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."