Wednesday March 1, 2006 - 07:38:27 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: More data, and more central bank meetings
The dollar struck a fresh one-month low against the yen on Wednesday after weak U.S. economic data dented expectations the Federal Reserve will boost interest rates two more times before the middle of the year.
Helping to support the yen against the dollar was a comment from a senior Chinese foreign exchange official that China would soon make its yuan currency basically convertible on the capital account. The comment stirred speculation that Beijing could let the yuan appreciate more than it has in the past, prompting investors to buy the yen, which is often used as a proxy for the yuan.
Another lot of data is due out today, both from Europe and the US, and both looking at manufacturing. Not expecting much movement today, ahead of tomorrow's ECB meeting, where it's widely expected that we'll get a 25bps hike, but much attention will focus on the press conference.
I can't see the EUR/USD or GBP giving back much of their gains from overnight, and as such would look to buy dips in these, and/or sell rallies in the USD.
Today's Economic Release:
Today's Top Trades
- EUR/USD buy around 1.1920, with stops under 1.1880
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."