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To: fedhead who wrote (11897)	6/5/2002 3:34:08 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 57684

is it possible to be a gold bull and a RE bear? These 2 are supposed to trade in tandem. I'm a RE bear but I have no feeling on gold other than it has momentum now.

To: fedhead who wrote (11897)	6/5/2002 5:24:47 PM
From: stockman_scott	Respond to of 57684

Dollar Up as US Services Data Outshines Eurozone's Ashraf Laidi foxnews June 5, 2002 4:00 PM: EUR/$..0.9395 $/JPY..124.46 GBP/$..1.4585 $/CHF..1.5648 Dollar Up as US Services Data Outshines Eurozone's by Ashraf Laidi It might seem like the euro is becoming correlated with shocking performances of European teams at the soccer World Cup Tournament. Friday's surprise loss of World Champions France to first timers Senegal, and today's defeat of European powerhouse Portugal to underdogs USA were both followed by a decline in the euro. But the economic explanation to today's euro decline was an unexpected fall in Eurozone services PMI in May, touching a 2-month low, followed by a jump in the US ISM services survey to a 19-month high at 60.1. a 107-tgain in the Dow also gave the dollar a much needed boost from the stocks' camp. Although the euro did end lower against the dollar, it managed to retrace all of the losses made during the US session, thus highlighting the vigor of pro-euro sentiment currently prevailing in Forex markets. After having lost half cent from its 94.15 cent high following the dismal Eurozone services data, the single currency regained the 93.90s but failed to break above the figure. The euro rebound was mainly helped by a rise in EUR/JPY to the 117 level, boosted by broad selling in the Japanese currency. Holding just below 94 cents, EUR/USD faces preliminary support at 93.60 will could spell further losses towards 93.45 which could pave the way for 92.80 Resistance remains at 94.20, with accumulated pressure at 94.50 and 95.0. EUR/GBP attempted to regain yesterday's 2 1/2 year highs of 64.60, but today's disappointing services data from the Eurozone did weigh on the pair. Cable's weakness prompted the currency towards the base of its 1-week long consolidation at $1.4533 after UK CBI's retail sales index tumbled to a 5-month low more than halving April's figure. The report is stark wake up call to Britain's consumer sector, which has long outpaced its manufacturing counterpart. Tomorrow's Bank of England meeting should produce no change in interest rates, keeping them at 4.00%. Cable faces support at 1.4535-40 followed by 1.45. Resistance seen at 1.46 followed by 1.4635-40. subsequent resistance seen at 1.4660. The 16.8% decline in Japan's Q1 capital expenditures as measured by the MoF's Corporate Survey could mean that Friday's much anticipated Q1 GDP release could come in around the 4%-5%y/y compared to previous forecast of 7%-8%. Earlier in the week, several Japanese private research groups forecasted an average of as much as 7.9%. Japan's MoF's Kuroda reiterated that recent yen strength was likely to be temporary, calling it a result of markets' overreaction to weak US data. He added that authorities would act on excessive currency moves but there was no intention to controlling FX rates beyond fundamentals. USD/JPY remained steady above around the key 124.50 level as a combination of weak Japanese data overnight and a strong performance in US stocks shored up the pair. But a break is needed above 124.80 to overcome risk of renewed bearishness. Subsequent resistance follows at 125.25-30. Support seen at 124.20 backed by 123.80-75 and 123.50. Intervention could come in anywhere between 123.50 and 123.30. USD/CHF ended near the mid range of its trading band at 1.5648 after struggling to regain the 1.57 level. Interim resistance starts at 1.5735-40 followed by at 1.5770. Support seen at 1.5655-60 backed by 1.5610. 1.5570 will act as the subsequent support. US stocks mostly cheered today's better than expected services sector survey from the ISM, which showed the best figure in over 2 years. Several reports from US equity strategists, including Morgan Stanley's notable Global Equity Strategist Barton Biggs stating that US markets have reached a possible bottom also helped stocks. Mr. Biggs is known for the accuracy of his downbeat forecasts over the past 3 years. Dow rallied 108 pts to close at 9796, NASDAQ added 17 pts to close at 1595 while S&P500 edged up 9 pts at 1049. forexnews.com