*Last Updated April 17, 2006, 11:58 pm

Daily report by CMC Markets

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FOREX ANALYSIS

Dollar under pressure as traders await further key data

April 18th - Despite the fact that yesterday’s sharp jump in the TICS data adequately covered the trade deficit, the market remains uncertain as to the outlook for the dollar. There’s renewed speculation that the run of interest rate hikes effected by the Fed may now be coming to a close and further direction might be available here in the most recent set of FOMC meeting minutes due for release later in the session. However, US PPI readings are also due today and again these stand to provide a good indicator as to whether or not inflationary pressures are starting to ebb. Obviously high oil prices will continue to filter through and the prospect of any US military intervention in Iran also stands to cause a degree of upset but in the absence of other numbers, the dollar looks set to remain under pressure across the board. There’s little economic data scheduled for release elsewhere today although as the week progresses data from the UK including Bank of England meeting minutes and inflation readings are set for release - again providing some direction for cable – whilst a raft of second tier readings are also due from the Eurozone. The dollar has got the week off to a difficult start and at least so far there’s little to suggest that we’re going to see any quick reversion…

Tim Wilbraham and Enis Mehmet



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