Reply #36: Dollar has been on a bit of a roller coaster today. Not sure what's [View All]

[54anickel]

helping to support it today? :shrug:

http://quotes.ino.com/chart/?s=NYBOT_DX&v=s
Last trade 85.10 Change -0.22 (-0.26%)

Settle Time 15:01 Open 85.30

Previous Close 85.32 High 85.39

Low 84.86 2006-08-03 13:41:12, 30 min delay



Forex - Euro eases off earlier highs as market looks ahead to US rate decision
http://www.forextv.com/FT/AFX/ShowStory.jsp?seq=140460

LONDON (AFX) - The euro eased off earlier highs against the dollar, reached after hawkish comments from European Central Bank president Jean-Claude Trichet, as uncertainty remained over next week's rate decision in the US.

After a surprise decision by the Bank of England to raise interest rates, plus a more hawkish-than-expected speech by Trichet indicating that further euro zone rate rises can be expected after today's hike, attention will centre on next week's rate decision in the US.

The market has gradually been moving to price in a pause by the Federal Reserve in raising interest rates on August 8, ending a period which saw 17 consecutive rate hikes, but there remains considerable uncertainty surrounding the decision.

Bear Stearns currency analyst Steve Barrow noted that today has seen a string of negative dollar news -- including a report that the Bank of Italy is cutting the proportion of dollars in its reserves in favour of sterling and weak US ISM services data as well as the two rate hikes -- but the dollar has still not fallen very much.

"The key really is what the Fed is doing and we are not really any closer to knowing that. Until the decision, the dollar will stay fairly steady," he said.

He added that quiet summer trade may be encouraging investors to stay on the sidelines for the time being.

"Either the dollar is finding some support from somewhere, or there isn't the usual interest at the moment," he said.

more...