Friday October 28, 2005 - 04:44:20 GMT
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Tricom Futures and Foreign Exchange -
Forex: Three Strikes, and the USD will be out
Early today, the US dollar was trading weaker against the euro and yen as traders favoured further selling as lower yield differentials work against the underlying strength of the US dollar.
the US dollar was sold overnight on a larger fall in US durable goods orders for September, as well as concerns General Motors Corp could file for bankruptcy. Also, an improved German consumer confidence survey outlook for November and hawkish comments from European Central Bank (ECB) members weighed on the US dollar.
Last week we had the first signs of a slowing manufacturing sector in the US, and this week we've seen a fall in consumer sentiment and a larger than expected drop in Durable Goods. I'm thinking that the US GDP data, due later today, may well be the third strike for the USD, and the beginning of the long awaited bearish correction in the greenback.
The focus on US economic health is now turned to tonight's release of advanced September quarter gross domestic product, with market expecting a 3.6 pct rise year-on-year, up from 3.3 pct in the year to August.
Today’s Economic Releases:
US: GDP 3rd Qtr.
US: Univ.Michigan Consumer Sentiment
Today’s Top Trades
- Buy EUR/USD around 1.2120, with stops under 1.2070
- Buy GBP/USD around 1.7800, with stops under 1.7750
- Sell USD/CHF around 1.2810, with stops above 1.2850
For more ideas send me an email, [email protected]
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