FX Daily WrapUp

The Euro took control in early morning trading and produced a high of 1.3045. Strong European GDP numbers contributed to the gain by posting an impressive 3.3% print versus an expected 3.0%. The total is up .6% over the third quarter 2006 report. In addition to the strong Euro Zone news, the US Commerce Department’s monthly trade deficit grew more than expected to $61.2 billion. Putting the move in context, the rise was the first major move in four months. It has been established that trade deficit numbers do not move the markets, but do lead to a possible big picture. These two factors led to the gains by the Euro over the US Dollar. Looking north, the Canadian Dollar made a 60-point advance on the US Dollar from a bit of technical profit-taking. Current ranges for the USD/CHF pair are hovering near the 100-point mark, but a good intra-day range can see more than a 150-point range. This is great for day traders looking for a wide ranging market with good technical indicators. As we head into the evening sessions, the EUR/USD is trading at 1.3035 and the USD/CHF is at 1.2426. David Hilgeman XPRESSTRADE Analyst