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LONDON (AFX) - The dollar was once again under broad based pressure in late trade with the euro and pound both notching good gains amid the weak dollar sentiment, analysts said. "The negative sentiment is still there," said Jane Foley, analyst at Barclays Capital. The pound set a new 11-year high of 1.7477 usd during the course of the day while the euro was well in the mid 1.22 usd level. Foley said that market positioning suggests that the euro has room to rise further. Earlier, intervention by the Japanese monetary authorities to weaken the yen helped dollar-yen rise in all its crosses. Dollar-yen was up as high as 108.75, before settling back just above the 108 level while the euro briefly dipped below 1.22 usd before rising back up. Analysts said the market tends to view every dip in the euro as an opportunity to buy. With the strength of US data unable to help the dollar, this type of activity is likely to continue. Still, today`s intervention from the Bank of Japan indicates that players cannot make one-way bets against the dollar without some thought. Elsewhere, the dollar`s mild lift from the Federal Open Market Committee`s pronouncements also faded away. Though the Fed maintained that US rates will stay low for a " considerable period" leading to a collective sigh of relief from the market, it did tweak its inflation bias, saying that the risk of deflation is now diminished. "In other words the Fed is edging down the tightening path -- it has an almost neutral bias," said Steve Pearson, head of currencies at HBOS Treasury Services. There was little currency market reaction to the pre-budget report from Chancellor of the Exchequer, Gordon Brown. The review was deemed bland with Brown hiking the government`s borrowing needs from previous forecasts but remaining on the right side of the UK`s strict fiscal rules much as expected. Brown also formalised the shift in the inflation target to the euro zone style HICP measure of 2.0 pct. The switch takes place with immediate effect. |
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| aus der Diskussion: | DAX TRADING - Tagesthread 10.12.2003, Elliottwellen u.a. |
| Autor (Datum des Eintrages): | junkstro (10.12.03 17:57:27) |
| Beitrag: | 108 von 129 (ID:11569103) |
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