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Friday, March 24, 2006

FX Closing Comments

The Dollar gave back yesterday's gains, especially in the Euro and Pound, largely in response to this morning's week new home sales data. Dollar bulls came to the fore on Thursday, emboldened by surprisingly strong existing home sales. Today, however, the mood soured with a 10% dip in new home sales for February. Interest rate expectations were tamed somewhat, with the result being a Dollar sell-off, and some modest gains for equities.