Thursday November 10, 2005 - 05:57:44 GMT
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Tricom Futures and Foreign Exchange -
Forex: Grab a snorkel everybody, 1.1500 here we come
The US dollar was trading mixed against the euro and yen, maintaining current trading ranges on cautious sentiment ahead of tonight's US trade data.
US interest rates continue to dominate currency markets, and will do so until traders find reasons why the Federal Reserve should pause in its cycle of rate hikes. Overnight, Cleveland Federal Reserve governor Sandra Pianalto said the central bank has no set target for US interest rates. "There is no numerical target because where the Federal funds rate is, where we adjust it to depends on economic conditions," Pianalto said.
European session to be largely uneventful, ahead of today's main event - US Trade Balance (expecting US$60Bln). The BOE meets today, no change in rates expected.
Tomorrow, the US markets are closed for Veterans' Day holiday. Expect some traders to take off early today, possibly soon after today's Trade data.
I remain comfortable with my view of selling the EUR and/or GBP on any strength going into the data today. Conversely, look to buy dips in the USD/CHF. With market sentiment in favour of a higher USD, and the fact that the US is the only major country hiking rates, i think this week's low in the Euro isn't it for 2005
Today’s Economic Releases:
UK: BOE meeting
US: Trade Balance
US: Univ. Michigan Consumer Sentiment
Today's Top Trades
- Sell EUR/USD around 1.1780
- Buy USD/CHF around 1.3080-90
For more ideas send me an email, [email protected]
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