Dollar Falls Ahead Of FOMC Meeting

With nothing of note on the economic
calendar today traders looked ahead to tomorrow’s FOMC meeting
, the
last one of 2005. Treasuries traded flat for most of the day and closed with
only a slight loss on the session. However, the US Dollar Index fell sharply as
the Dollar experienced its biggest selloff in more than 2-months versus the Euro
today.

The energies rose, boosted by news that OPEC maintained their
official production quota of 28 Mln barrels per day. Also contributing to the
gains were forecasts of more cold weather hitting the Northeast US this week. A
series of accidental explosions at a depot north of London on Sunday were also
cited by traders as boosting prices (report).

In the metals, Gold continued to rise, hitting another new
contract high today. All the grains posted strong performances, with Corn and
Soybeans leading the way among the major contracts.

Economic News

US November Budget Deficit Is $83.1 Bln.

Go to our
Economic
News
section for more reports and in-depth analysis.

Ashton Dorkins

ashtond@tradingmarkets.com


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