Wednesday May 31, 2006 - 23:19:07 GMT
Share This Story
Tricom Futures and Foreign Exchange -
Forex: Rangebound trading continues amid all the confusion
The dollar was higher late Wednesday in New York, advancing on solid data and the minutes from the Federal Reserve's May policy meeting.
The minutes of the Federal Open Market Committee initially befuddled markets as investors tried to decipher the content, but the dollar soon climbed to intraday peaks, adding to gains won earlier in the New York session. While some analysts said that the minutes exemplified the uncertainty surrounding the Fed's direction, they noted that July fed funds futures contracts are pricing in roughly a 64% chance of a rate hike in June. That helped the dollar lift to fresh highs for the day versus the euro, yen, Swiss franc, and U.K. pound. Also, the minutes from the Federal Reserve's latest policy meeting suggested that the central bank was still concerned about inflation. Although the minutes from the May 10 meeting showed that policy makers were not certain how much more monetary tightening, if any, was needed, a mention that inflationary pressures were rising helped reinforce expectations for more rate rises.
The USD has further upside to go, and in the wide, the market remains trapped in a 200 pip range. EUR/USD could easily get back down to 1.2710, while USD/CHF could trade back up towards 1.2250.
Today's Economic Release:
US: Weekly Jobless
Today's Top Trades
- Buy EUR/USD arund 1.2730, with stops under 1.2680
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."