Reply #19: Daily Dollar Watch [View All]

[54anickel]

Thought UIA would be back today :shrug:

http://quotes.ino.com/chart/?s=NYBOT_DXY0&v=i

Last trade 87.36 Change +0.38 (+0.44%)

Settle 86.98 Settle Time 23:36

Open 87.09 Previous Close 86.98

High 87.49 Low 86.83


http://www.forexnews.com/NA/default.asp

Dollar Higher as Market Awaits TICS

The US dollar has bounced back this morning, trading higher against all of the major currency pairs. The market remains mostly subdued ahead of today’s release of the US Treasury Department’s TICS data for June, which reports the amount of foreign purchases of US assets. Expectations vary with some calling for an increase to $64.5 billion from $60 billion in May. However, the recent lack of foreign interest in US Treasury notes – as indicated by last week’s sluggish foreign participation in US Treasury auctions in which the 5-year auction drew only 21.5% (the lowest on record) – could foreshadow a retreat in foreign flows towards the $55 billion figure. Last Friday saw the release of US trade data, which widened to $58.8 billion and, if expectations of the TICS data coming in at $55 billion are correct, this would mean that the US was unable to attract enough foreign inflows to finance its spending habits for three of the past four months. Thus, putting additional downward pressure on the dollar.

Today also sees the release of the New York Fed’s Empire survey of manufacturers in New York state. Last month, the index climbed to its highest level of the year at 23.9. This month, however, the index is expected to pare down some of the gains it made and come in at 19.4. A further look into the status of the US manufacturing sector comes towards the end of the week with the release of the Philadelphia Fed survey, which, unlike the New York Fed survey, is projected to increase to 13.5 from 9.6.

The price of crude oil continues to chart new territory as it sets yet another record high of $67.10/barrel. Although prices are currently down off this latest high, tension about future terrorist attacks could add to oil’s momentum, with $67.75 looking like the next potential resistance level.


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Dollar weakens further in futures market

The US dollar’s weakness has also been apparent in the futures market with the dollar losing ground against the euro, sterling, loonie and aussie. Only against the yen and swissie did the dollar post slight gains.

The euro has moved into net long territory against the dollar for the first time since early May with net long contracts coming in at 4,231 from last weeks net short position of 191 contracts. China’s recent statement that the euro would be one of the four main currencies in its new basket, although not unexpected, should help prop up further interest in the euro.

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