Tuesday January 10, 2006 - 05:51:19 GMT
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Tricom Futures and Foreign Exchange -
Forex: What's keeping this USD up here?
The US dollar was trading mixed against the major currency pairs, while overnight comments from Federal Reserve officials that inflation is still a concern provided a measure of support.
The US dollar was bought overnight, halting the recent heavy selling after the weak December non-farm payrolls data released on Friday, as traders returned to growth fundamentals and interest rate differentials.
Atlanta Federal Reserve president Jack Guynn indicated he is pleased with market expectations for future US interest rates, but remains attentive to potential inflation pressures which will depend on data ahead
Kansas City Federal Reserve president Thomas Hoenig repeated recent official comments the Federal funds rate is at the lower end of the neutral range, and the primary concern is the upside risk to inflation
I'm a little surprised by the USD's recovery yesterday, following Friday's employment data, but saying that, the dollar hasn't exactly rallied back like a thoroughbred race horse. Probably more like a stubborn donkey, refusing to fall.
I continue to like buying dips in the EUR, and/or selling strength in USD/CHF and USD/JPY, with 40-50 pip stops in each.
Today's Economic Release:
US: Wholesale Trade
Today's Top Trades
- EUR/USD: Buy dips to 1.2010-20, with stops under 1.1960
For more ideas send me an email, [email protected]
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