European Mid Morning Update 9th June 2006

Europe has entered the market clearly with little interest in pushing the Dollar in either direction. Stats at over today are:

8:30   U.K. Visible Trade Balance
9:00   Euro-Zone Construction Output QoQ
10:00 Euro-Zone OECD Leading Indicators
10:00 Euro-Zone WG Industrial Production YoY
11:00 Canada Unemployment Rate
12:30 U.S.A. Trade Balance
12:30 Canada International Merchandise Trade
12:30 U.S.A. Import Price Index YoY

We can’t see these enough to push the Dollar strongly in either direction but our analysis suggests that we should see the Dollar make a further attempt higher later today. In the meantime we cannot rule out a slightly deeper correction. However, if we see the Dollar towards 1.2652-67 EURUSD, 1.2390-1.2420 USDCHF, 115.74 USDJPY and 1.8321 and possibly 1.8274-90 GBPUSD we feel this should be the upside limit for now.

        USDJPY: EURUSD:      USDCHF:     GBPUSD:
Res: 115.74    1.2781        1.2420        1.8535
Res: 114.71    1.2682-00   1.2362        1.8472

Spt: 113.71     1.2624        1.2305        1.8367
Spt: 113.39     1.2552-67   1.2229        1.8321