*Last Updated November 29, 2005, 1:05 am

Daily report by CMC Markets

Website: http://www.cmcmarkets.com

Email: info@cmcmarkets.com

FOREX ANALYSIS

Dollar retreats again as mixed economic data leaves traders lacking confidence

November 29th - The greenback retreated further through the Asian session against major currencies after yesterday’s downbeat existing home sales data took the shine off the sharp increase in consumer spending that was reported over the holiday weekend. Essentially it’s going to be a case of waiting for fresh numbers due over the coming days before deciding if the dollar can resume its upward trend, although with the transition into December, there’s no shortage of data available. Consumer confidence numbers slated for release today are perhaps most likely to provide some direction in the short term as inflationary pressures may direct the FOMC’s approach as we move into 2006. Obviously a more dovish attitude to interest rates would initiate further selling of the USD across the board whilst the fact that the ECB is on course to add 25 basis points at their next meeting this Thursday looks set to lead the common currency higher in the coming days too. It really seems as if the coming days may be a good opportunity for a spell of consolidation of recent dollar gains – 2005 has seen the dollar pull back from some punishing lows and the fact that this trend may be levelling out before the year end should hardly be a matter of concern…

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.