Currency-Trading Reviews 4 Oct 2007

BillyT's Daily Forex Currency-Trading Reviews for 4 October 2007

EURO:

The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4150 level and was supported around the $1.4065 level. As expected, the European Central Bank kept interest rates unchanged with the refinancing rate steady at 4.00%. ECB President Trichet reiterated price risks remain to the upside and noted money and credit growth remains vigorous but conspicuously dropped "accommodative" to characterize the ECB's current monetary policy stance. Moreover, Trichet noted there is growing uncertainty over eurozone growth prospects but predicted inflation will remain above 2.0% through early 2008. Trichet also referred to his remarks earlier in the week wherein he said

YEN:

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥116.25 level and was capped around the ¥116.75 level. The pair retraced some of its recent gains and continues to orbit the ¥116.40 level, representing the 38.2% retracement of the move from ¥124.15 to ¥111.60. Bank of

BRITISH POUND:

The British pound gained ground vis-à-vis the U.S. dollar today as cable tested offers around the US$ 2.0425 level and was supported around the $2.0275 level. As expected, Bank of England's Monetary Policy Committee kept its headline repo rate unchanged at 5.75% and did not issue any policy statement. Minutes from today's MPC meeting will be released on 17 October and traders will closely scrutinize the minutes to determine if any policymakers voted to reduce interest rates. Data released in the

SWISS FRANC:

The Swiss appreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1815 level and was supported around the CHF 1.1735 level. Technically, today's intraday high was just below the 38.2% retracement of the move from CHF 1.2145 to CHF 1.1620. Dollar offers are cited around the CHF 1.1885 level. The euro and British pound came off vis-à-vis the Swiss franc as the crosses tested bids around the CHF 1.6595 and CHF 2.3900 levels, respectively.

BillyT Daily Forex

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