Blame the Frogs [V]Quote:
quote:Xerof - Well, seems everyone is having bother with the chop - TRL has reverted to original calls in european update....staying on sidelines for me
French opposition increases, euro falls
.....................The euro tumbled this morning in Asian trading after it was reported that Nicolas Sarkozy, head of French President Chirac’s ruling UMP party, told Prime Minister Jean-Pierre Raffarin that all hope of passing the referendum on the EU Constitution was lost. Although this was later denied by a spokesman for Mr. Sarkozy, it comes on the heels of a TNS-Sofres poll released today, which indicated increased opposition by the French public to the EU Constitution to 54% from 53%.
After digesting this latest political drama, the currency markets stabilized ahead of this morning’s important release regarding Q1 GDP in the US. The market largely expects growth in the US to be revised upwards to 3.7% from 3.1%. It is certainly possible that the markets have already factored in an increase in US GDP so a smaller than expected rise could prove bearish for the greenback. Conversely, a revision larger than anticipated could add further support to dollar bulls.
This morning also sees the release of US preliminary Personal Consumption figures and Weekly Initial US Jobless Claims. Apart from these fundamentals, the market will also be paying close attention to the numerous speeches today by Fed members. Ezechiel Copic
The action is still within the zone circa 8210-8335. (GBP.USD)
so lets wait and see. It would certainly be prudent to wait for
a reversal confirmation signal before taking the plunge.