Monday September 6, 2004 - 09:57:58 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Greenspan back in focus
The employment data has offered some reassurance over the US economy and there will also be expectations of a further US interest rate increase in September. The data was not, however, strong enough to remove uncertainties over US trends and the dollar will still find it difficult to gain strong buying interest, especially with doubts that the economy will be able to accelerate. The dollar is likely to face tough resistance on any rallies to the 1.20 level.
The dollar strengthened after the US employment data with a move to a high of 1.2050 from 1.2170 ahead of the data and the US currency was little changed in early Europe on Monday. Trading activity in the short term with be limited by the US market holiday.
The non-farm payroll increase of 144,000 was marginally below expectations of a 160,000 increase. The figures for the previous two months were, however, revised up by a total of 59,000. The markets were concerned over another very weak figure and the data has alleviated these immediate fears. It is also more likely that the Fed will increase interest rates again in September to 1.75% and this will help underpin the US currency.
The underlying doubts over US economic strength will, however, continue and there is still the risk that the economy will slow, especially as the ISM index for the services sector fell significantly to 58.2 in August from 64.8 the previous month. There will also be some concerns over consumer spending levels after generally disappointing industry reports.
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."