Tuesday, January 03, 2006
Report Drives US Dollar Lower
The Dow Jones News Service reports on what's moving the US dollar this morning. "The dollar fell to session lows against most major currencies after a sharper-than-expected drop in the Institute for Supply Management's manufacturing index. The December ISM manufacturing index fell to 54.2 from 58.1. The reading had been expected to come in at 57.1. There were also substantial declines in the prices and employment indexes."
"'This is clearly disappointing data,' said Greg Anderson Currency Strategist at ABN Amro in Chicago. 'We have the lowest ISM in four months, and that contrasts to a very strong run we've seen in the euro-zone's PMI.'"
"Around 10.20 a.m. EST (1520 GMT), the euro was at $1.1948 from $1.1828 late Friday, according to EBS. The dollar was at Y116.90 from Y118.01, and at CHF1.2985 from CHF1.3154. The pound was at $1.7342 from $1.7179, and the euro was at Y139.69 from Y139.55.
"The data came as the dollar was already weakening, particularly against the euro. The single currency was already at a session high in the minutes leading up to the data. After the ISM number came out, the euro tapped a session high of $1.1950, its highest level in two weeks. The dollar also dipped under other keynote levels, falling below Y117 and under CHF1.30 against the Swiss franc."
"The poor ISM number comes ahead of the release of the minutes of the Dec. 13 Federal Reserve meeting. The minutes are expected to underscore that the Fed will be increasingly data sensitive in its future policy decisions."
"'This is clearly disappointing data,' said Greg Anderson Currency Strategist at ABN Amro in Chicago. 'We have the lowest ISM in four months, and that contrasts to a very strong run we've seen in the euro-zone's PMI.'"
"Around 10.20 a.m. EST (1520 GMT), the euro was at $1.1948 from $1.1828 late Friday, according to EBS. The dollar was at Y116.90 from Y118.01, and at CHF1.2985 from CHF1.3154. The pound was at $1.7342 from $1.7179, and the euro was at Y139.69 from Y139.55.
"The data came as the dollar was already weakening, particularly against the euro. The single currency was already at a session high in the minutes leading up to the data. After the ISM number came out, the euro tapped a session high of $1.1950, its highest level in two weeks. The dollar also dipped under other keynote levels, falling below Y117 and under CHF1.30 against the Swiss franc."
"The poor ISM number comes ahead of the release of the minutes of the Dec. 13 Federal Reserve meeting. The minutes are expected to underscore that the Fed will be increasingly data sensitive in its future policy decisions."
# posted by Ben Jones @ 9:06 AM 
