*Last Updated April 6, 2006, 11:46 pm

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Dollar in focus as market awaits non-farm payroll data

April 7th - In very much the same way that the European interest rate verdicts dominated yesterday’s agenda – and delivered a fair degree of volatility to boot – we can expect today’s US non-farm payrolls to be the centre of attention for many traders. The year has got off to a solid start for growth in the US labour market – a downward revision in January may have caused some concern but the expectation for today’s reading is something not far off 200,000, so assuming this is met or perhaps even exceeded then there will be renewed concerns aired over the state of US inflation. Indeed some are saying the fact that gold is now trading around the key $600 level is testament to the fact that the Fed’s run of low interest rates may have lasted too long in the first place, but any suggestion that the labour market is continuing to tighten apace will likely further feed these inflationary concerns. Data due later in the session – wholesale inventories and consumer credit – may provide some additional direction ahead of the weekend break, especially if the payrolls come in in-line with expectations but in the meantime there may be little reason for traders to get too involved ahead of the 1.30pm BST/8.30am EST announcement.

Andrew Cottrill 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.