The dollar remains under pressure from the deteriorating subprime mortgage market. The euro set a record high at 1.3797 versus the dollar and the sterling hovers around high levels 2.03. Economic data from US came out in line with expectations and did not impact the dollar much. Trade deficit rose from 58.5 billion to 60 billion in May as expected.
The Bank of Japan left interest rates at 0.50% as expected last night. The report showed board members voted 8-1 to keep the rates unchanged, a signal that August may still be too early for the central bank to raise rates. The yen remains under pressure from carry trades.
The market will look at US retail sales report, University of Michigan consumer sentiment survey, and business inventories for more clues on the economic conditions and outlook.
CAD will out perform USD in the months ahead with market pricing in another rate hike by the end of the year. The underlying trend remains intact from a MT/LT perspective. Look to sell any significant bounce around 1.0600 for a target of 1.0300, stop at 1.0760.
DOMAINS YAHOO FOR CONFERENCE CALL SERVICE
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment