Monday March 13, 2006 - 07:45:10 GMT
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Tricom Futures and Foreign Exchange -
Forex: The USD looks bid ahead of a big week of data
The dollar hit 2006 highs against a basket of major currencies on Friday after a solid U.S. February employment report sent investors betting the Federal Reserve may raise interest rate hikes beyond previous expectations.
The dollar index rose to around 91.16, its highest level for the year so far, while the dollar hit one-month highs against the yen.
U.S. non-farm payrolls rose 243,000 in February, up from a rise of 170,000 in January and above economists' forecasts of a 210,000 gain.
A slow start to the week expected today, as traders take another look at Friday's numbers and talk starts of further rate hikes in coming months.
The economic calendar looks pretty packed for the remainder of the week, with US Current Account, folowed by Retail Sales, and CPI. Elsewhere, we have UK PPI today, followed by German CPI, and UK Retail Sales later in the week.
For today you have to assume the USD will remain bid, and the EUR and GBP will remain under pressure. The Yen will also remain capped as long as the market sees a BOJ rate hike many months away.
Today's Economic Release:
- UK: PPI
Today's Top Trades
- Buy USD/CHF around 1.3110-20, wiith stops under 1.3070
- Sell USD/CAD on a break under 1.1580, with stops above 1.1620
For more ideas send me an email, [email protected]
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