Wednesday November 30, 2005 - 05:33:32 GMT
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Tricom Futures and Foreign Exchange -
Forex: How are you suppossed to trade the market with all the economic data, and political commentary coming out at the moment
The US dollar was trading firmer against the euro and yen, and is expected to be supported by solid economic data releases, despite Thursday's expected rate hike in the euro zone.
The US dollar rallied overnight after strong US consumer confidence, durable good orders and new homes sales data indicating firm US economic activity well above that in the euro zone or Japan.
The trend is getting harder to pick, following Monday's USD sell-off, and then yesterday's subsquent recovery. Markets are entering a phase where they will be looking for recession type signs in the US, with Federal Open Market Committee members hinting rate hikes may go too far.
There will also be increasing political comments out of the euro zone, following Thursday's likely hike of 25 percentage basis points by the European Central Bank. Overnight, Luxembourg Prime Minister and Finance Minister Jean-Claude Juncker warned the expected ECB rate hike on Thursday is occurring too early for the economy. While Spain's economic minister Solbes said euro zone interest rates may only rise by a maximum 50 percentage basis points over the next year.
Throw in today's slew of various economic data out of the US, and who can say they really have any idea of where these markets are headed.
Today's Economic Release:
Ger: Retail Sales
US: Q3 GDP Revision
US: Chicago PMI
US: Beige Book
Today's Top Trades
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