Reply #2: daily dollar watch

[UpInArms]

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 87.83 Change +0.25 (+0.29%)

http://futures.fxstreet.com/Futures/news/AFX/singleNew.asp?menu=latestnews&pv_noticia=MTFH78433_2004-07-15_11-02-57_N2W321256

Europe gold price eases, watches dollar and data

LONDON, July 15 (Reuters) - Gold eased lower in Europe on Thursday in muted trade ahead of key U.S. data that will signal future dollar direction, traders said.

Spot gold <XAU=> softened to $403.80/404.30 per troy ounce by 1019 GMT, compared with $404.75/405.50 last quoted in New York on Wednesday, when the metal touched a high of nearly $406.

The U.S. producer price report for June is due at 1230 GMT, while consumer price data will be released on Friday. Both figures will provide more clues about the likely direction of U.S. interest rates and so the dollar.

Aggressive rises in U.S. interest rates would tend to boost demand for the dollar -- dulling the attraction of dollar-priced bullion for non-U.S. investors.

"Activity in Europe is quite dull at the minute and will probably stay that way until the figures this afternoon. The market is looking a little bit bearish but support around the $400 area is still pretty firm," one dealer said.

The dollar inched higher against the euro and yen as the market awaited the U.S. data. The U.S. currency slid to within a whisker of four-month lows against the euro on Wednesday, allowing gold to bounce briefly, after retail sales figures showed U.S. consumer spending slowing.

...more...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1089881430-9e32d306-14354

Forex - Dollar pushes higher ahead of US inflation data

LONDON (AFX) - The dollar pushed higher against major currencies ahead of US inflation data as investors begin to shed some of their recent pessimism towards the US economy

Movements were limited, however, on caution ahead of today's US producer price index data, and particularly ahead of tomorrow's CPI inflation figures, which should give the market more hints as to the future direction of US interest rates

"Market optimism over today's June US PPI data is re-emerging," BNP Paribas analysts said

A figure for PPI above 2.0 pct would be needed to fuel expectations of aggressive Fed hikes, and this would need to be corroborated by a US CPI figure of 2 pct tomorrow, they said. Yesterday's disappointing retail sales figures, however, make outperformance in consumer prices unlikely, they added

Meanwhile, sterling weakened against the dollar, largely on profit-taking and concerns over possible overvaluation of the UK currency, analysts said

...more...

Well, it's MaeveDay! Lots of reports due here today:

Jul 15 8:30 AM
Business Inventories May
- 0.7% 0.6% 0.5% -

Jul 15 8:30 AM
Core PPI Jun
- 0.2% 0.2% 0.3% -

Jul 15 8:30 AM
Initial Claims 07/09
- 335K 340K 310K -

Jul 15 8:30 AM
NY Empire State Index Jul
- 28.0 28.0 30.2 -

Jul 15 8:30 AM
PPI Jun
- 0.0% 0.2% 0.8% -

Jul 15 9:15 AM
Capacity Utilization Jun
- 77.7% 77.7% 77.8% -

Jul 15 9:15 AM
Industrial Production Jun
- 0.0% 0.1% 1.1% -

Jul 15 12:00 PM
Philadelphia Fed Jul
- 25.0 25.0 28.9 -

Jul 15 2:00 PM
Treasury Budget Jun
- NA NA $21.2B -

Have a Great Day Marketeers!