Thursday March 23, 2006 - 10:45:33 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Dollar looks at housing data
The dollar pushed to highs around 1.2065 against the Euro on Wednesday, but was unable to sustain the gains and drifted back to 1.21 in New York before settling close to 1.2080. The dollar retained a slightly firmer tone in early Europe on Thursday, but was unable to make substantial headway and was holding close to 1.2070.
Markets will be on alert for interest rate comments from ECB officials over the next 24 hours and the Euro will be vulnerable if officials voice concern over growth prospects.
Markets will continue to look ahead to the Fedâ€™s interest rate meeting next week. There is still a very high degree of confidence in an interest rate increase to 4.75%, but there are still major uncertainties over policy thereafter and the housing data will be watched closely over the next 48 hours to assess interest rate prospects. Ahead of the data, US bond yields fell during Wednesday and this hindered dollar rally attempts. Market expectations are more likely to be revised down than up given that rates of 5.0% are currently priced in.
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."