Wednesday August 4, 2004 - 09:18:34 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Markets looking for trigger
The overall dollar tone should remain firm ahead of Friday's report although, with a reluctance to maintain positions for long in current circumstances, narrow ranges should prevail. There will be further tests of 1.20 and there is a 40% chance that this level will break, potentially pushing the dollar to at least 1.1950. The Euro will need to push above 1.2085 to make significant progress and this will be tough for now. From a longer-term perspective, the dollar still offers little value stronger than 1.20.
The dollar gain failed to push through 1.20 but the Euro's inability to push above 1.2085 has weakened its technical position.
The US data was slightly weaker than expected, with a 0.7% decline in personal but markets are looking ahead to July information and there was some relief that car sales rebounded. Attention is still focussed on the Friday employment report as it will set the market tone for the following week at least. Wall Street vulnerability and high oil prices will be a longer-term negative dollar factor.
The Euro-zone PMI services index was slightly weaker than expected at an unchanged 55.3 in July. The German unemployment figures were also disappointing with a reported 10,000 increase, but the IMF has revised up its 2004 GDP growth forecasts for the Euro-zone. Overall optimism over the economy should be slightly stronger.
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."