*Last Updated March 8, 2006, 12:48 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Cable finds new level as traders await key US data

8th March - Despite a continued run of bullish US economic figures and indications of a slowdown in the UK economy, cable has rallied off overnight lows around the 1.7350 region after yesterday’s run of selling with some seeing the Pound as a little oversold. Given the fact that British consumer sentiment is clearly struggling and employment data continues to soften, there’s seen to be little threat from inflationary pressures – something that may have otherwise been expected in light of the continued run of high energy prices. With the latest Monetary Policy Committee meeting at the Bank of England getting underway today, this news will leave traders in little doubt that the a verdict of no change will be reached but as always the meeting’s subsequent minutes will be eagerly awaited in a couple of weeks time. Obviously cable stands to be influenced significantly by the big numbers due from the US over the next few days – namely trade deficit and payroll data – and after shedding around three cents in a little over 24 hours arguably the dollar is looking a little overbought right now. A sharp jump in US imports could leave the greenback under a degree of pressure in the short term, but the prospect of static cash yields may well detract from Sterling in the weeks ahead…

Stuart Scrase 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.