*Last Updated April 26, 2006, 1:06 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Dollar struggles to consolidate latest gains; raft of data due in coming days

April 26th - The dollar seemingly remains under pressure as we approach the month-end. There was something of a reversion last night perhaps most noticeably over the Japanese Yen with some feeling the latest sell-off had been a little overdone but these gains are already being eroded and as markets await the official IAEA report on Iran’s nuclear work – due on Friday – the cautious tone may well prevail. Yesterday’s US consumer confidence certainly delivered some support on the upside but unless this is backed up with some robust business confidence data in today’s beige book and a strong showing in durable goods orders, the dollar may well be subjected to another run of selling in the near term. Today’s oil inventory data may also offer some direction, not least coming on the back of the recent declaration by President Bush that the US strategic reserve will temporarily suspend stockpiling crude over the next few months to boost available supply. Oil prices have edged lower in recent trade and such a move – if sustained - will at least help keep the trade deficit in check, although there’s still a lot of data due for release ahead of the weekend break so further volatility amongst the major currencies should be expected.

Paul Jackson and Enis Mehmet



Phone USA: + 1 212 644 4220
Phone UK: + 44 207 170 8201
Fax USA: +1 212 644 4222
Website: http://www.cmcmarkets.com

Disclaimer: Although obtained from sources believed by us to be reliable, CMC Markets and its affiliates cannot guarantee the accuracy or completeness of the information upon which this commentary is based. This commentary does not purport to disclose the risks or benefits or entering into particular transactions and should not be construed as advice in any specific instance. The views in this report constitute our judgement as of this date and are subject to change without notice.



Fx-charts.com Disclaimer: The information contained on this website is subject to change without notice, views and opinions expressed on fx-charts.com may be those of individual authors and may not necessarily be the views of fx-charts.com or its officers and employees, we make no claim to the accuracy or timeliness of any information contained herein. We recommend obtaining advice from a suitably qualified financial advisor before entering into any financial transactions or agreements. The use of this website constitutes acceptance of our privacy policy, disclaimer and terms of use. This website is available for information and educational purposes only.