FX Daily Wrap Up
March 6, 2007
The US Dollar remained relatively flat today, despite bearish numbers from the US. The Commerce Department’s Factory Orders for January posted a considerable 5.6 percent decline, the largest monthly drop in over 6 years. Traditional wisdom reasons that this information would push the market in a bullish direction, but the market ignored most news out of the US and posted very modest gains immediately following the release. The January ISM manufacturing activity report and the Durable Goods Orders report had a similarly minimal effect on the majors. Just like the other numbers, the broad contraction in demand came as companies attempted to work off excess inventories, especially in the construction and automotive industries. The only real point of interest showed a stronger-than-expected reading in the February ISM, and has signaled that it is more than possible the next release will be quite similar. The US Dollar held its own, posting only a tiny 20-pip loss to the Euro and increasing slightly against the Yen. Tomorrow’s releases include Crude Oil Inventories and Consumer Credit. Taken by themselves, these are fairly decent indicators of the strength of the US economy, but the big items this week will be Thursday’s Non-Farm Payroll and Unemployment rates. Currently, the EUR/USD is trading at 1.3121 as we head into the Asian sessions.
David Hilgeman, XPRESSTRADE Analyst
The US Dollar remained relatively flat today, despite bearish numbers from the US. The Commerce Department’s Factory Orders for January posted a considerable 5.6 percent decline, the largest monthly drop in over 6 years. Traditional wisdom reasons that this information would push the market in a bullish direction, but the market ignored most news out of the US and posted very modest gains immediately following the release. The January ISM manufacturing activity report and the Durable Goods Orders report had a similarly minimal effect on the majors. Just like the other numbers, the broad contraction in demand came as companies attempted to work off excess inventories, especially in the construction and automotive industries. The only real point of interest showed a stronger-than-expected reading in the February ISM, and has signaled that it is more than possible the next release will be quite similar. The US Dollar held its own, posting only a tiny 20-pip loss to the Euro and increasing slightly against the Yen. Tomorrow’s releases include Crude Oil Inventories and Consumer Credit. Taken by themselves, these are fairly decent indicators of the strength of the US economy, but the big items this week will be Thursday’s Non-Farm Payroll and Unemployment rates. Currently, the EUR/USD is trading at 1.3121 as we head into the Asian sessions.
David Hilgeman, XPRESSTRADE Analyst
posted by XPRESSTRADE, LLC at 3/06/2007 02:19:00 PM
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