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Friday, July 6, 2007

News Highlights

The Dollar rose versus the majors after the better-than-expected U.S. services sector activity and ADP employer services. The European Central Bank kept the rate unchanged at 4 percent, but was still quite hawkish about the possibility of another rate hike later this year. The EURUSD was traded at high of 1.3660 before it slipped below 1.3600. In addition, Bank of England increased the rate as expected to 5.75% and said that inflation risks remained to the upside.

The biggest winner yesterday was New Zealand Dollar, reaching 0.7881, the highest since 1985.

As for today, most important data will be U.S. change in Non-farm payroll. Other key economic data is Sterling Industrial production and Canada Employment number.

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