Euro Commentary for 17-Aug-06

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Euro Commentary provided by Blair Baker at Global Financial, Ltd..:
Tables & Charts

The euro gained further ground vis-ŕ-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2865 level and was supported around the $1.2770 level. The intraday range was thin before the release of U.S. economic data that saw the pair move considerably higher. First, it was reported that consumer inflation accelerated last month with the consumer price index up 0.4% m/m and 4.1% y/y, up from June’s +0.2% climb. Energy costs were up 2.9% in July, the largest increase in three months. The ex-food and energy core component was up +0.2%, below expectations and unchanged from June’s tally, and were up +2.7% y/y, the sharpest pace since December 2001. Dealers reacted to these data by reducing exposure to the dollar as traders priced in less of a chance the Federal Reserve will lift interest rates next month. Other data released today saw July housing starts decline 2.5% to...continued 

Euro Focus

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Day's Change 52-Week High 52-Week Low

Instrument

Current

 Points % Date Value Date Value
Exchange Rates

17-Aug-06
EUR/AUD This marker indicates the current chart. 1.6756 0.0032 0.19% 6-Jun-06 1.7282 25-Nov-05 1.1484
EUR/CAD This marker indicates the current chart. 1.4386 0.0027 0.19% 5-Sep-05 1.4921 25-Nov-05 0.9945
EUR/CHF This marker indicates the current chart. 1.5786 -0.0034 -0.22% 3-Apr-06 1.5846 8-Dec-05 1.5360
EUR/GBP This marker indicates the current chart. 1.4762 -0.0052 -0.36% 10-Nov-05 1.4901 5-Apr-06 1.4273
EUR/JPY This marker indicates the current chart. 148.6900 0.3200 0.22% 16-Aug-06 148.6900 22-Aug-05 134.2000
EUR/USD This marker indicates the current chart. 1.2849 0.0063 0.49% 12-May-06 1.2925 25-Nov-05 0.8485
EUR/USD Fwd-1 Yr This marker indicates the current chart. 221.0000 0.0000 0.00% 9-Jun-06 273.0000 1-Sep-05 220.0000
 
Interest Rates

17-Aug-06
EUR 3M LIBOR This marker indicates the current chart. 3.2271% 0.0071% 0.22% 16-Aug-06 3.2271% 30-Dec-05 2.4866%
USD 3M LIBOR This marker indicates the current chart. 5.4100% -0.0160% -0.30% 19-Jul-06 5.5200% 2-Sep-05 3.7610%
 
Indices

17-Aug-06
CAC 40 This marker indicates the current chart. 5,137.31 22.29 0.43% 9-May-06 5,312.18 28-Oct-05 4,326.71
DAX This marker indicates the current chart. 5,812.94 36.14 0.62% 9-May-06 6,140.72 26-Aug-05 4,783.80
DJIA This marker indicates the current chart. 11,327.12 96.86 0.86% 10-May-06 11,642.65 21-Oct-05 10,215.22
NASDAQ This marker indicates the current chart. 2,149.54 34.53 1.61% 19-Apr-06 2,370.88 21-Jul-06 2,020.39
 

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source: DTN Market Access

part 1...1.795 million units, the slowest pace since May 2003. These data are important because they confirm the U.S. housing market continues to slow and many economists see the housing market as the single largest potential risk factor in the U.S. economy. Some believe the U.S. economy will be beset by a recession that will start with a significant pullback in the U.S. housing market. Other data released today saw July industrial production climb +0.4% while the capacity utilization reading printed at +82.4%, the highest level since June 2000. The feds funds future market is now pricing in about a 30% chance the Fed will lift the federal funds target rate by +25bps on 20 September. Euro bids are cited around the US$ 1.2775/ 40 levels.

SUPPORT   RESISTANCE

 
L1.       1.2415 1.3040             
L2.       1.2340 1.3185 
L3.       1.2265 1.3475

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