| 5/22/2008
2:30 PM: EUR/$..1.5698 $/JPY..104.28 GBP/$..1.9783
$/CHF..1.0332 AUD/$..0.9546 $/CAD..0.9858
Dollar Rebounds
The greenback benefited from better than expected
weekly jobless claims earlier in the New York
session, rebounding against the euro and yen near
1.57 and 104, respectively. Amid a dearth of US
economic reports, traders focused on weekly jobless
claims, which improved to 365k and beating estimates
for an increase to 375k from 371k a week earlier
¨C using it to prop the dollar off one-month
lows versus the euro.
The economic calendar in the Friday session will
see April existing home sales, which is forecast
to slip to 4.85 million units from 4.93 million
units from March.
GBP Buoyed by Data
The sterling extended its recover against the
dollar, climbing above the 1.98-level for the
first time in three-weeks, at 1.9848. The pound
was propped higher by slightly better than expected
UK economic data. Retail sales in April declined
by less than estimated, posting a 0.2% drop, better
than forecasts for a 0.5% decline versus a 0.4%
drop in March. The annualized figure was in line
with expectations, falling to 4.2% from 4.6% a
year earlier.
In the coming session, traders will look ahead
to the second release of Q1 GDP ¨C expected
to remain unchanged from the preliminary readings
at 0.4% q/q and 2.5% y/y.
Cable has eased by the afternoon session, slipping
back beneath the 1.98-level. Support is seen at
1.9740, followed by 1.97 and 1.9660. Additional
floors will emerge at 1.9630, backed by 1.96 and
1.9550. On the upside, resistance is eyed at 1.98,
followed by 1.9850 and 1.99. Subsequent ceilings
are seen at 1.9925, backed by 1.9960 and 2.
|
