*Last Updated May 26, 2006, 12:03 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Yen under pressure as CPI misses target, further US data awaited May 26th - Currency markets remain in something of a volatile mood and there are no immediate signs of this sentiment fading, with more inflation-bearing data due out of the US ahead of the long weekend break. Numbers released from Japan overnight may have shown inflation rising there for the sixth consecutive month, but the core CPI reading of 0.4% was marginally lower than expected and as a result traders took the opportunity to sell the Yen through the overnight session. USD JPY is now settling around 112, some way off earlier lows around 111.4 but the Michigan consumer sentiment data plus the personal income & spending numbers which are due later could easily result in further movement here. Any suggestion that inflationary pressures remain strong in the US could push the dollar higher and data released over the last few days, whilst far from consistent, has shown a trend to suggest that further rate hikes may still be required at the Fed to keep consumer spending in check.

David Hutchings 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.