*Last Updated May 8, 2006, 11:55 pm

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Dollar finds some upside on EUR, GBP but Yen remains dominant

May 9th - Overnight comments from Japan’s finance minister left many traders under the impression that those in Tokyo may be somewhat unhappy with the Yen’s recent rise against the dollar, but central bank intervention against the move seems unlikely. This news did however give traders something to work on through the Asian session with USD/JPY holding not too far off yesterday’s lows. However with tomorrow’s FOMC statement widely awaited, the dollar seems set to remain under pressure unless there are solid suggestions that US economic growth can support further rate hikes in Washington through the summer. Certainly Friday’s non-farm payroll data gave some cause for concern so the market will be looking at today’s US wholesale inventories to see if any directional information can be forthcoming. Both cable and euro-dollar have slipped overnight and whilst both pairs may have been looking a little overbought of late, the fact that we’ve seen the currencies trade within 100 point ranges does suggest that a quick bout of profit taking off recent gains could result in something of a short term bounce. It’s going to be tomorrow before we get the next real directional information but ahead of this expect further volatility to follow…

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.