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Tuesday, September 19, 2006

FX Closing Comments

There was a fair amount of price action in the FX markets today, with the Dollar Index up 13 ticks. Although the U.S. data was solidly "dovish" the Dollar headed north on a poor German ZEW index report. The monthly review of analyst sentiment fell substantially in September, putting pressure on the Euro, an occurrence that is usually helpful to the Dollar, the other major reserve currency. Also making headlines was the Thai Bhat, which suffered the effects of the coup in that country. The Canadian Dollar was also soft after the release of tame consumer price figures. Tomorrow has a FOMC meeting and most belive that the Fed will not move on rates. Expect close analysis of the follow-up commentary.