Friday November 18, 2005 - 05:25:11 GMT
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Tricom Futures and Foreign Exchange -
Forex: Use the pullback in the USD to get long. This rally's not over yet
The US dollar was trading firmer against the major currency pairs, with further profit-taking likely to be limited as traders await a further rate hike in US interest rates on December 13.
The US dollar was sold overnight following disappointing US data releases which in turn led to a further fall in US bond yields. The euro rallied to 1.1761 usd from 1.1642 at the beginning of the overnight trading session, while the dollar weakened to 118.47 yen before retracing higher.
With no major figures do out today, looking for a quiet end to the week. Additionally, most traders will be reulctant to close out profitable USD longs with such little fundamental evidence around to buy the EUR or GBP, and continued talk of another rate hike in the US in December.
An overnight ECB report suggested downgrades of economic growth numbers, thereby diminishing the chances of a December rate hike, and a possible XMAS rally for the Euro.
Today's Economic Release:
Today's Top Trades
- Sell EUR/USD around 1.1730-40
- Buy USD/CHF around 1.3200-3190
For more ideas send me an email, [email protected]
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