Dollar consolidates gains, cable may break higher.
June 13th – The dollar has consolidated gains through the Asian session as speculation continues to build that US inflationary pressures will leave the Fed with little option but to maintain the hawkish stance over interest rates for some time yet. There are key numbers due out later in the session – most notably the US PPI although the retail sales reading and business inventories are also due – and assuming last month’s growth is repeated here too, then traders may take this as a signal to lead the greenback higher still. Worthy of note however is the UK CPI reading that’s due in the next few hours after yesterday’s PPI data showed that higher input prices are now clearly filtering up the supply chain. Any suggestion that the Bank of England will have to tighten its interest rates in the near term to counter inflationary pressures in the UK might start to lend some degree of support to the Pound which is now sitting well below the mid-May highs of 1.90 against the dollar, but this may prove short lived assuming UK and US Interest rates continue to diverge as 2006 progresses…
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.
Need a forex broker? click on any of the buttons for more info!
