Monday, April 17, 2006

 

Currency Traders Await 'Flurry Of Economic Data'

Market Watch reports on the uncertain trading ahead this week. "The dollar traded sharply lower early Monday, sliding to a more than one-week low versus the euro and yen, as traders cautiously awaited a flurry of economic data for clues on the U.S. economic and inflation outlook. In early New York trading, the euro rose to $1.2240, up 1.1% from late Friday. The dollar changed hands at 117.75 yen, down 0.8%. The dollar weakened 1.3% to 1.2815 Swiss francs, while the pound rose 1.2% to $1.7704."

"Earlier, the dollar showed little reaction to weaker-than-expected data showing manufacturing activity in the New York area slowed in April. The Empire State Manufacturing index fell to 15.8 in April from a revised 29.0 in March New York Federal Reserve Bank said. Economists were expecting the index to fall to 24.5."

"The dollar also weakened after reports from China that Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, called for authorities to gradually reduce their purchases of U.S. debt and instead focus on buying more physical goods from the U.S."

"Such a measure, in the short-term, 'may only exacerbate dollar's troubles as China has become the second largest holder of dollar reserves in the world and therefore represents pivotal buying demand for U.S. debt obligations,' said Boris Schlossberg, senior currency strategist."

"On Tuesday, the Federal Reserve will also be releasing the minutes from their March 28 monetary policy meeting, which is also the very first meeting that Ben Bernanke served as Fed Chairman. 'Market players don't want to be caught the wrong way here going into a very heavy data week in the U.S.,' said Michael Woolfolk, senior currency strategist at the Bank of New York."

"Kathy Lien said with oil prices making new record highs, 'inflation figures this week should be good for the dollar as well, which means that we are setting up for a dollar positive week .'"

Comments:
gold over $600, silver soars and there is no discussion?
 
I don't know about you guys, but I was busy today making sure Uncle Sam gets his.
 
It gets quiet when we're all busy totalling up our gains!!!
 
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