*Last Updated January 5, 2006, 11:44 pm

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Limited newsflows leave dollar rangebound ahead of non-farm payrolls

January 6th - Currency markets remain somewhat quiet ahead of the US non-farm payroll figures due later in the session. Against the majors the dollar has been little changed for the latter part of the week, with no additional direction having been seen since the release of the FOMC meeting minutes. With newsflows being relatively thin right now there are a lot of people simply sitting out of the market altogether or consolidating existing positions. There’s a degree of consensus forming however that suggests the dollar sell-off we saw after Tuesday’s minutes perhaps isn’t quite complete and if today’s employment data fails to impress, traders may find another reason to further sell off the greenback in the short term. Yesterday’s oil inventory figures – again keenly watched given the general lack of fundamental data being released – failed to provide much support with demand for crude remaining high, whilst reserves of refined products are on the increase. US manufacturing slowed in December, knocked in part by these increased energy prices and again this is a factor that looks set to weigh on the country’s economy as we move into 2006. As a result, this combined with the impact that higher oil prices will potentially have on the US trade deficit means that crude prices are likely to remain squarely in focus as traders look for dollar direction in the medium term…

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.