Daily Currencies News from DailyFX

1. Inflation Tamed, Dollar Drops

   The dollar tumbled against the majors today as slower than expected inflation bolstered speculation that the Federal Reserve will soon put an end to rate hikes. Consumer prices rose 0.1 percent in February, slower than the 0.7 percent increase in the previous month, according to the U.S. Labor Department. Excluding food and energy, core prices were up 0.1 percent after a 0.2 percent gain in January.
   
   
   

   DailyFX (Thursday, March 16, 2006 at 17:27)

2. EUR/USD – Ratio Flips, Signals More Gains Ahead for EUR/USD

   HASH(0x9913be4)

   DailyFX (Thursday, March 16, 2006 at 15:59)

3. British Pound Crosses Remain In Range

   1.  GBP/JPY
   2.  GBP/CHF
   3.  GBP/AUD
   
   

   DailyFX (Thursday, March 16, 2006 at 11:51)

4. Strong Consumer Price Growth in Europe

   The euro recouped losses against the greenback this morning as consumer prices remained above the European Central Bank’s 2% upper limit.  Prices rose 0.3% from January’s drop of -0.4%, while annualized numbers were inline with expectations at 2.3%.  February’s consumer price index, which is typically driven by energy prices, grew primarily from seasonal factors.  Inflation holding above the ECB’s target provides further support for additional tightening as the year progresses.  EZ new car registrations were up 2.7% year over year, continuing to show an improvement in consumption, but growth was slower than the previous 6.1%.  French non-farm payrolls remained consistent with the previous quarter at 0.1%.  The EUR/USD traded at 1.2070 at 11:27 GMT, slightly higher than the New York close of 1.2068.

    

   DailyFX (Thursday, March 16, 2006 at 11:42)

5. Dollar Retreats As Range Trading Continues

   ·  Euro Keeps 1.2000
   ·  Japanese Yen Targets 116.00
   ·  British Pound Heads Toward 1.7500
   ·  Swiss Franc Breaks Below 1.3000
   ·  Canadian Dollar Aims For 1.1500
   ·  Australian Dollar Remains Above .7350
   ·  New Zealand Dollar Continues To Tumble
   
   
   Trader’s Corner:
   
   
   
   As a trader I learned never to assume anything and to differentiate between the continuation and reversal setups and to never trade continuation during a reversal and to never to trade a reversal when the market calls for a continuation. The most common mistake made by novice traders is to think that the market has to reverse because it has gone to “far” or continue to trade in the same direction just because the trader thinks it will. WRONG. Nothing has to do anything. In order to become successful, a trader must never assume anything and to never anticipate the market, but to react to it. Price does not reverse or continue just because the trader thinks it will and has a position on in anticipation the move. A key to successful trading is understanding that the price will move in a predetermined direction until it stops moving in that direction and reverses, only than trader should enter the market after understanding whether price is going to reverse or continue, and trade after the confirmation, not in anticipation of it. REMEMBER: NEVER ANTICIPATE THE PRICE ACTION, REACT TO IT AND YOU WILL BE SUCCESSFUL. Please fell free to email at sshenker@fxcm.com with your comments.
   
   
   

   DailyFX (Thursday, March 16, 2006 at 09:20)

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