Wednesday March 1, 2006 - 07:38:27 GMT
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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
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