Reply #39: Dollar Watch

[54anickel]

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

Last trade 91.17 Change +0.76 (+0.84%)

Settle 90.41 Settle Time 23:36

Open 90.41 Previous Close 90.41

High 91.22 Low 90.23


Forex - Dollar rises as market prepares for strong US GDP data Thursday
http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1083169503-9e32d306-44773

LONDON (AFX) - The dollar moved higher, rising past key levels against the the euro, yen and the pound as participants took advantage of a quiet session to prepare for a strong US GDP growth figure tomorrow

This sort of "squaring up for a strong GDP number" saw the US currency charge higher, said Kamal Sharma, strategist at Dresdner Bank

Notably, the euro slipped below 1.1850 usd while the pound fell under 1.78 usd. The dollar also rose past 110 yen briefly. Dresdner for one expects US GDP to have risen by an annualised 5 pct in the first quarter, putting the official rubber stamp on US economic recovery

But the data will be only the first of several hurdles for the dollar. The labour market report next Friday and the US Fed's statement after its rate decision on Tuesday will be pivotal. With these hurdles remaining, markets will be wary of taking bets against the dollar even if Thursday's GDP data come belowe expectations. Elsewhere, the pound had little to cheer about despite a hint from Marian Bell, a member of the Bank of England's interest rate setting Monetary Policy Committee, that UK rates will have to rise. She highlighted that the current low rate of inflation as measured by the CPI index would not affect the MPC's rate decision as it targets inflation over the coming two years

At last count, the CPI stood at 1.1 pct in March, well short of the 2.0 pct official target set by the government. But markets have already priced in a quarter point hike in May

more...


NY FX:Dlr Tone Firm After Gold Dips Below Key $387.50 Support
http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=200404281205MKTNEWS_MAINWIRE_BC46_6444

NEW YORK, April 28 (MktNews) - A sharp dip in gold below key technical support at $387.50/$389.00, driven by earlier declines in other commodity prices, helped to keep a dollar buy trend alive at midday Wednesday, traders said.

Earlier, copper, aluminum and silver declined sharply, driven by fears of declining Chinese demand, which was sparked by a report quoting Chinese Premier Wen Jiabao stating that China needed "forceful measures" to cool its economy.

While expected strong Chinese demand has helped to underpin various industrial metals markets this year, and therefore was ultimately behind part of the declines being seen in these metals, analysts maintained that the market was overly long and unwinds were to be expected.

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Gold sales, driven by stop-loss selling as well as large fund selling, pushed the precious metal to lows near $384.65/oz.

Spot gold held at $385.00/oz. at 11:57 a.m. EDT, off from overnight highs near $398.40.

Tom Fitzpatrick, technical analyst at Citigroup, warned however that a daily close below $387.50/$388.50 will be needed to make sure the days declines are not a "one day wonder".

"You really need a daily close below that level to classify it as a break," he said.