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Tuesday, October 03, 2006

Daily FX Wrap-Up

The dollar managed to pull-out slight gains against both the Euro and the Yen this afternoon, coming back from yesterday's dramatic fall. In the US markets, Crude Oil plunged below $60.00 a barrel, giving a much need break from higher gasoline prices, while the Dow Jones Industrial Average rallied to an all-time high, and produced a reason to look bullish on the US dollar. The big news today remains the soaring Pound. Many professionals were expecting a bit of a retraction after yesterday's 120 pip gain, and while the Euro and the Yen did see a pull back, the Pound stayed firm. GBP is currently trading at 1.8875 vs.the dollar, up another 10 pips from yesterday's stellar performance. Great Britain has had a surge of favorable government reports recently, leading to this stellar run against the greenback. Traders will be looking towards this Friday's US employment report for further clues to the direction of the Dollar.