AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
-------------------------------------------------------------
Traders did not react on a rise of 0.2% in the U.S. leading indicators for October which was in line with expectations. Instead, the continued weakness in yen due to carry trades supported the greenback as most economists expected U.S. interest rate would remain firm given that the core-CPI was still above the Fed's inflation target of 1-2% range. Hence, euro retreated from an intra-day high of 1.2852 to 1.2805 while usd/chf rebounded from an intra-day low of 1.2397 to 1.2450.
On the other hand, the British pound gained ground aginst both yen and euro mainly due to the Rightmove house price index, released earlier in the day, rose by 1.5% in Novemeber which exceeded the economists' forecast of 0.7%. As a result, the sterling rose from 223.18 to 224.26 yen while eur/gbp retreated from 0.6780 to 0.6754. Cable also edged higher from 1.8932 to 1.8988 before stabilising in afternoon U.S. session.
Dollar also traded higher against the Canadian unit from 1.1422 to a fresh month's high of 1.1485 after the worse-than-expected Canadian wholesale trade report for September (-1.6% vs. the forecast of -0.4%).
Tuesday's focus will be on the minutes of BOJ monetary policy meeting between 12-13 October. Data to be released include Swiss trade balance and PPI, U.K. CBI industrial orders, as well as Canadian retail sales and leading indicators. -------------------------------------------------------------
Updating time : 20/11/2006 19:07 GMT
Dollar rebounds as investors focus on yen carry trades
Traders did not react on a rise of 0.2% in the U.S. leading indicators for October which was in line with expectations. Instead, the continued weakness in yen due to carry trades supported the greenback as most economists expected U.S. interest rate would remain firm given that the core-CPI was still above the Fed's inflation target of 1-2% range. Hence, euro retreated from an intra-day high of 1.2852 to 1.2805 while usd/chf rebounded from an intra-day low of 1.2397 to 1.2450.
On the other hand, the British pound gained ground aginst both yen and euro mainly due to the Rightmove house price index, released earlier in the day, rose by 1.5% in Novemeber which exceeded the economists' forecast of 0.7%. As a result, the sterling rose from 223.18 to 224.26 yen while eur/gbp retreated from 0.6780 to 0.6754. Cable also edged higher from 1.8932 to 1.8988 before stabilising in afternoon U.S. session.
Dollar also traded higher against the Canadian unit from 1.1422 to a fresh month's high of 1.1485 after the worse-than-expected Canadian wholesale trade report for September (-1.6% vs. the forecast of -0.4%).
Tuesday's focus will be on the minutes of BOJ monetary policy meeting between 12-13 October. Data to be released include Swiss trade balance and PPI, U.K. CBI industrial orders, as well as Canadian retail sales and leading indicators. -------------------------------------------------------------
