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Denese's review
Investment Sector: Currencies Submitted by Denese 
2 months ago Tags: Currency outlook EUR/USD Bernanke UK Housing prices Add Tag |
Yesterday Federal Chairman Bernanke said that downside growth risks had diminished and left the interest rates at 3.0%. The US Commerce Department said exports showed the biggest gain in four years, thanks to the weak dollar, which makes American products more competitive abroad.
The EUR/USD remained stable though ahead of G8 talks and rumours of rate increases in the EUR. The EUR/USD traded up to 1.5487 before consolidating between 1.5475/85 in extremely dull Asian trading. Model fund
buying underpinned the EUR/USD as did hawkish comments from the ECB"s Liikanen who said that the ECB must act decisively if price expectations rose.
UK Employment data was lower than expected, but had little effect on the Euro.
Events in the US today that could influence the dollar price
07:00 MBA refinancing index for Jun 07 week
10:35 EIA petroleum inventories for Jun 07 week
11:30 FRB Kohn (voter) at FRB Boston's research conference
12:15 Fed Gov Kroszner on consumer credit in Cleveland, Ohio
13:00 FRB St Louis' Bullard (non-voter) speaks an event in St Louis
14:00 Fed's Beige Book a survey of regional economic performance
FXCM Analysts are targeting 1.5365, but I would keep the stops quite tight.
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