Daily FX Wrap Up

Heading into the final stretch, the FOREX race is far from over. EUR/USD rallied nearly 100 points in early morning trading hours to 1.3180. From there, short-term bullish momentum in the US Dollar allowed a 50 pip retracement before fresh buying pushed the pair back to its highs and then quite a bit further. Concurrently the Pound rallied over 170 pips against the greenback to 1.9655 before the morning pullback erased a majority of the gains. However, like its Euro counterpart, the pair ended the US afternoon session near the highs. US traders are awaiting the remaining economic releases in the last full week of 2006. Today's releases of Housing Starts and Producer Inflation were expected to draw weak interest from the market, however a sizable gain in producer prices caught traders by surprise causing volatility to rise after the release. Currently the EUR/USD is trading at 1.3190 moving into the Asian session. XPRESSTRADE Analyst David Hilgeman