*Last Updated March 1, 2006, 12:23 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Dollar under pressure amidst mixed economic data; oil inventories eyed.

March 1st - Yesterday’s broadly mixed economic data from the US has injected a degree of doubt into currency markets as to whether the Fed will now be in a position to add another 25 basis points to interest rates at their next meeting later in the month. This has been reflected through the Asian session with the dollar losing ground against the major currencies and the impact has likely been exaggerated by traders booking end of month profits. There is however another raft of economic data scheduled to come out of the U.S. today so expect this to be under close scrutiny as the market looks for any further indication as to where rates will go next. Oil inventory data is also due for release later in the session – the fact we’ve spent the last three weeks with US Light crude trading under the $65/barrel mark should in the longer term provide some support for the February trade balance (due in early April) and in turn the dollar too, but ahead of this any suggestion that supplies are under pressure stands to push prices higher once again. Geopolitical tensions continue in both Iran and Nigeria and although winter should soon be drawing to a close, another cold snap could easily leave heating oil reserves under pressure too.

Tim Wilbraham 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.