*Last Updated April 6, 2006, 12:35 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Choppy start to month for EUR/USD

April 6th - It’s certainly been a choppy start to the month for the likes of EUR/USD with the pair trading over close on a 300 point range in the last few days as the debate continues as to just how quickly yields on the respective currencies will converge. Today’s European Central Bank rate verdict – and perhaps more importantly the subsequent statement by bank President Trichet – will be closely watched and although expectations are for at least two further rate hikes out of Frankfurt this year, any additional suggestion that the next 25 basis points will be added in May could initiate a further run of buying of the common currency. Right now the dollar does seem to be struggling to find any sustainable support – yesterday’s better than expected ISM services data gave the greenback a little upside but any attempt at a rally was short lived and overall gains remained limited. Essentially it’s going to be tomorrow’s non-farm payrolls that may stand to provide the next real directional information for the dollar and we’ve seen on a number of occasions that the threat of inflationary pressures in the US will boost support for the greenback. However, unless there’s a sharp increase tomorrow – and US Treasury Secretary John Snow has said it will show “good numbers”, so perhaps a gain in excess of 200,000 – any notable upside may prove difficult to find.

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.