Monday, March 07, 2005

Dollar struggles after Employment number

The dollar after a stronger(slightly) non farm payroll number on friday sold off aggressivly against all currencies. The market seemed to take the news as clarification that interest rate rises will conytinue at a "measured" pace and that there will be increase in the speed of rises. I feel the dollar will be in a range near term and will look to sell Euro 1.34(ish) level and buy it at 1.30(ish) level. higher yielding currencies (Aud,Nzd,Gbp)should out pace the market in the coming days.

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