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Dollar rose after ISM survey beats forecasts

Discussion in 'Forex Daily News & Outlook' started by prav, Jul 6, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The European Central Bank kept rates on hold at 4% but suggested it would raise borrowing costs again in coming months to fight inflation. The Dollar fell against Sterling after the Bank of England raised interest rates to 5.75%, as expected, and said inflation risks remained to the upside. The US currency hit a 26-year low versus the Sterling on Wednesday. Many traders remain bearish on the Dollar, but with Sterling already at 26-year highs and the Euro also just short of record peaks against the Dollar, some were locking in short-term gains. The ISM Services index rose to 60.7 in June, beating forecasts for a modest decline from the previous month to 58 and easing concerns about a slowing economy. Another report, the ADP Employer Services, forecast a higher than expected gain in private sector jobs, boosting expectations the Labor Department's monthly payrolls data on Friday will beat expectations as well.


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