Wednesday, May 23, 2007

FX Sideways Amid Dearth of News

At 4:30 AM UK April PS net borrowing (exp 1.5 bln stg, prev 8.5 bln stg)
UK April PSNCR (exp -1.5 bln stg, prev 17.2 bln stg)

The dollar holds steady against the majors heading into the week, buoyed above the 121-level versus the yen and steady near 1.9740 against the sterling. Trading is off to a slow start given the dearth of economic events early in the week. The G8 Finance Ministers meeting over the weekend also provided traders with little new material to digest, refraining from mentioning foreign exchange levels in its communiqué.

The US economic calendar is light this week, with the releases of the May Richmond Fed manufacturing index, April durable goods orders, April new home sales, and existing home sales. Also worth noting this week, will be US Treasury Secretary Paulson’s meeting with Chinese officials in Washington on Tuesday.

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