Tuesday November 22, 2005 - 06:07:11 GMT
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Tricom Futures and Foreign Exchange -
Forex: Just when we thought we had a central bank official talking straight
The US dollar was trading mixed against the major currency pairs, and is expected to range trade over the remainder of the week with little fresh economic data. The US dollar regained support after initial selling overnight, following European Central Bank president Jean-Claude Trichet's comments the central bank is not planning a series of rate hikes in the euro zone, without a series of ECB rate hikes, the US will maintain a juicy interest rate advantage over the euro zone, serving to support the US dollar.
Tonight's release of the minutes from the FOMC meeting on Nov 1 is not expected to show any notable change in language, with inflation risks remaining the Federal Reserve's key focus.
It's probably advisable to turn off your screens for the rest of the week, because the most you could expect from anyone trade would be 30 pips, and that's being optimistic. Thanksgiving's on Thursday, and the US markets are expected to half day tomorrow, and again on Friday.
The EUR strength we expected to last most of the week came to an abrupt end overnight, suggesting further downside again.
Today's Economic Release:
US: FOMC Minutes
Today's Top Trades
- Sell EUR/USD around 1.1740-50
- Buy USD/CHF on a break above 1.3215
For more ideas send me an email, firstname.lastname@example.org
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