Trading Signal Today 12-21-2007
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Dollar extends gain across the board today as the near term continues, with paying much attention to economic data. Data from US saw Q3 GDP growth unrevised at 4.9% annualized rate. Personal consumption was also left unchanged at 2.8%. Though, GDP factor and PCE core were both revised upwards. On the other hand, jobless claims rose back again to 346k, above expectation of 335k. Conference Board Leading indicators and Philly fed survey will be featured next.
From UK, Q3 GDP growth was revised upward from 3.2% yoy to 3.3% yoy. However, current account deficit widened much more than expected to -20b. Nevertheless, cable remains pressured across the board as traders increased bet on further rate cut from BoE in near term after yesterday's dovish MPC minutes. Cable dips further to below 1.99 after taking out 2.0 psychological level.
Yen remains steady against dollar and edges higher against Euro. BoJ left rates unchanged at 0.5% as widely expected. The main surprise was the unanimous vote as opposed to the 8-1 vote split in previous meeting. It appears that the lone dissenter Mizuno has finally realized that it's not time for another rate hike based on the current economic outlook. Yen paid little attention to China's rate hike.
( Written by ActionForex.com)
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