Thursday February 23, 2006 - 07:39:14 GMT
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Tricom Futures and Foreign Exchange -
Forex: The market remains range-bound, but for how long??
The US dollar was trading weaker early today against the euro and yen, but is expected to remain supported after benign core consumer price data in the US.
The US dollar rose against the euro but was sold against the yen following the release of the US CPI data for January, which showed headline inflation was greater than market expectations while the core measure was flat.
The headline US CPI measure for January rose 0.7 pct from a fall of 0.1 pct in December and was above market expectations of a 0.5 pct increase
The Yen firmed up during the Asian session following comments by BOJ Governor Fukui that The Bank of Japan is hoping to end its quantitative monetary policy as soon as all the conditions laid down for its removal are met. Fukui was telling upper house's financial affairs committee.
I think the comments by the BOJ Governor will be the centre of attention for the rest of today, particularly in the absence of major economic data.
Once again the market appears trapped in a 50-60 pip range - EUR/USD: 1.1930-1.1870, USD/CHF: 1.3140-1.3080, and GBP/USD: 1.7460-1.7380. During early London yesterday, it appeared that the USD was firming up, and the EUR/USD was heading under 1.1860, but again the market turned around.
I have no real view of this market today, aside from looking to sell Yen crosses (USDJPY, GBPJPY, EURJPY)on any strength.
Today's Economic Release:
Today's Top Trades
- Sell USD/JPY around 117.70-80, with a stop above 118.30
- Sell EUR/JPY around 140.40, with a stop above 140.90
For more ideas send me an email, [email protected]
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