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The Currency Futures Report

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Risk Aversion, Weak Sterling, Support Dollar

Fri, Jun 19 2009, 06:17 GMT
by Bob Kozak

Alaron


Dollar Index (DXU9):

The DX opened higher at 80.935 as weak equity markets overseas entice traders to seek the safe-haven benefits of the Dollar. Weaker Retail Sales and tighter credit in the U.K. sent Sterling tumbling to a morning Lo of 1.6185 as traders await U.S. economic data. Equity traders may adjust positions ahead of Friday's 'quadrouple' witching and take more profit/risk off the table, support more flight to quality. The s/t trend remains 'negative' w/ neutral momentum indicators. A lower open may find Support at 80.22 and 79.86, while an open above 80.78 should find Resistance at 81.14 and 81.70.


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