Thursday January 12, 2006 - 05:55:19 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: Interest rates are back under the spotlight
The US dollar was trading mixed against the euro and yen, but selling risks are evident ahead of the US trade deficit and an expected hawkish statement following the European Central Bank meeting tonight.
The US dollar was sold overnight as traders turned to interest rate expectations in the coming months, with some influence from geopolitical concerns arising from Iran's decision to resume nuclear fuel research
Most of the market is playing a waiting game today ahead of today's ECB and BOE meetings, and later the US Trade data.
Today, currency traders are anticipating ECB head Jean-Claude Trichet will be more aggressive in signalling further interest rate increases this year, now that the euro zone economy is showing signs of life
Although no rate hike is expected following tonight's ECB meeting, the following statement by Trichet is expected to outline these aggressive signals providing support for the euro.
The market consensus for the US trade deficit for November is centred on a 66.1 bln usd outcome which is below the record deficit of 68.9 bln usd set in October, while market expectations range between 62-71 bln usd
Today's Economic Release:
UK: BOE Meeting
EU: ECB meeting
Today's Top Trades
- EUR/USD: Buy dips to 1.2110, with stops under 1.2060
- USD/JPY: Sell strength towards 114.40-50, with stops above 115.00
For more ideas send me an email, [email protected]
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."