NEWS / Central Banks

Euro should reach higher this week.

Daily Currency report for Monday August 14 2006

This is only a guide. Please refer to our specific entry signals for exact entries and stops.

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This Week's Economic Calendar
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Date ET Release For Actual Briefing.com Consensus Prior Revised From
Aug 15 08:30 Core PPI Jul 0.2% 0.2% 0.2%
Aug 15 08:30 NY Empire State Index Aug 17.0 15.0 15.6
Aug 15 08:30 PPI Jul 0.4% 0.3% 0.5%
Aug 15 09:00 Net Foreign Purchases Jun NA NA $69.6B
Aug 16 08:30 Building Permits Jul 1825K 1845K 1869K
Aug 16 08:30 Core CPI Jul 0.3% 0.3% 0.3%
Aug 16 08:30 CPI Jul 0.4% 0.4% 0.2%
Aug 16 08:30 Housing Starts Jul 1800K 1810K 1850K
Aug 16 09:15 Capacity Utilization Jul 82.7% 82.6% 82.4%
Aug 16 09:15 Industrial Production Jul 0.6% 0.5% 0.8%
Aug 16 10:30 Crude Inventories 08/11 NA NA -1114K
Aug 17 08:30 Initial Claims 08/12 315K NA 319K
Aug 17 10:00 Leading Indicators Jul 0.1% 0.1% 0.1%
Aug 17 12:00 Philadelphia Fed Aug 10.0 8.0 6.0
Aug 18 09:50 Mich Sentiment-Prel. Aug 82.5 84.0 84.7

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EUR/USD

Medium Term Trend: Drifting lower without a great deal of momentum and without triggering too many stops, the euro has reached a low of around 1.2700. We continue to feel that we will try to base between 1.2680 and 1.2650 this week, and all dips to these levels are seen as good opportunities to buy euros for a rally back to 1.2900, and eventually to 1.3000 and above. Although unlikely, we shall have to allow for dips to drop as low as 1.2550, with anything below that forcing us to review the medium term direction.

Strategy today: No change: Buy dips (only on signs of basing) between 1.2750 and 1.2650, stops below 1.2630, target 1.3000.

Chart: Still trying to hold onto first support around 1.2730.