1 February 2005, 09:34  FOREX POINTS: US Market Update

The US dollar continued to consolidate against the majors in New York, as traders were preparing for the barrage of the key economic releases and geopolitical events scheduled for this week.
The market remained subdued despite dollar positive economic data. The Chicago PMI printed at 62.4, higher than the consensus of 59.5. The other dollar positive development was an error by Canada's statistical arm, where the imports were understated and as a result, it may add an additional .5% to the final GDP number.
The latest data confirms the trend of strengthening US economy and as long as the economic data remains positive, the dollar bulls should get a boost as fundamentals build a strong case for the greenback's support.
The US dollar was quoted at 1.3046-49 against the euro, 1.8838-42 versus the British pound and 103.60-64 against the Japanese yen.
The US stocks rallied today as geopolitical tensions receded, as Iraqi elections concluded without major incident. Wall St was further boosted from an increase in merger and acquisition activity by US companies.
Dow Jones Industrial Average gained 0.6 percent to 10,489.94, while the Standard and Poor's 500 index climbed 0.9 percent higher to 1,181.26. The NASDAQ Composite rallied 1.3 percent sharply higher at 2,062.41.
Acquisition related announcements flooded the markets adding to the bullish sentiment.
The major deal of the day was a takeover of AT and T, down 2.6 percent to $19.11, by SBC Communications, up 0.6 percent to $23.76, in a deal valued at $16 billion.
Lee Enterprises up 1.5 percent to $44.55announced it was buying Pulitzer, higher by 0.9 percent to $63.46, for $1.4bn.
The NYMEX crude oil futures contract for March delivery gained $1.02 to $48.20 per barrel, as traders expect the US economic recovery to boost demand for petroleum products.
The COMEX gold futures contract for the April delivery fell $4.00 to $424.10 per ounce, as the geopolitical tensions eased after the successful Iraqi elections took place over the weekend.
The US treasuries remained virtually unchanged, as traders did not react to positive economic data showing continuing growth in the US economy.
The markets are awaiting the FOMC interest rate decision this week as the Federal Reserve is widely expected to raise rates by 25 basis points to 2.50 percent.
The US Treasury bond futures for March delivery finished at 112.08, unchanged for the day.

© 1999-2024 Forex EuroClub
All rights reserved