Reply #5: daily dollar watch

[UpInArms]

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

Last trade 82.84 Change -0.18 (-0.22%)

http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=MTFH66536_2005-01-12_12-45-29_L1236287

FOREX-Dollar on back foot ahead of U.S. trade data

LONDON, Jan 12 (Reuters) - The dollar lost ground against the euro and the yen on Wednesday ahead of U.S. trade data that could put the market's focus back on structural problems in the U.S. economy.

The yen was on a firmer footing, hitting a seven-week high against the euro and a one-week peak on the dollar, after comments on Tuesday by the European Central Bank's chief economist urging Asia to share the burden of dollar weakness.

Markets are awaiting U.S. November trade data at 1330 GMT. The trade deficit, a factor behind the dollar's three-year decline, is expected to have narrowed slightly to $54 billion in November from $55.46 billion in October.

"If is there is an improvement you might see a bit of a dollar pick up but does anyone believe that's the start of a new trend? I don't think so," said Neil Mellor, currency strategist at Bank of New York.

"The deficit will probably continue to deteriorate on a trend basis regardless of today's figure."

...more...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1105530966-9e32d306-21436

CSFB sees soft US dollar, global equities overperforming in near-term 2005

SINGAPORE (AFX) - Credit Suisse First Boston (CSFB) is forecasting a mild weakening of the US dollar and a possible overperformance of the equities market globally in the near term, CSFB chief economist and strategist Arjuna Mahendran said here

The dollar will remain pressured by the anticipated revaluation of the yuan, although CSFB does not see the Chinese authorities making such a decision until after the Chinese New Year

CSFB foreign exchange strategist Charlie Lay said that China is likelier to resist revaluing the yuan the more it is pressured to do so

"If the G7 keeps on pressuring China to do something, the more the heat, the less they are willing to do anything. That's what they (G7) fail to realize," Lay said, adding however, that will continue to be the case even if revaluation would be in China's interest

CSFB expects the revaluation to be in the range of 3.0-5.0 pct

The bearish dollar sentiment is also seen borne of concerns over the US fiscal and current account deficits. "The USD has further room to weaken before stabilizing at USD/JPY 100," CSFB said

...more...

Due at 8:30 EST is the Trade Deficit numbers

Today's Reports:

Jan 12 8:30 AM
Trade Balance Nov
report -
briefing.com -$52.3B
market -$54.0B
last report -$55.5B
revised -

Jan 12 2:00 PM
Treasury Budget Dec
report -
briefing.com $0.0B
market -$0.0B
last report -$17.6B
revised -

Have a Great Day Marketeers!