• Home ::
• Fundamental ::
• Market View ::
• The Currency Futures Report

• Send
• Print
• Add To
• Rss

The Currency Futures Report

85868542-e29a-418a-a6e3-4302643797ec

3

0

World Bank Forecast 'Shakes' Confidence, Supports Dollar

Tue, Jun 23 2009, 08:21 GMT
by Bob Kozak

Alaron

Dollar Index (DXU9):

The Dollar opened higher at 81.16 after the World Bank revised its forecast for the global economic recovery 'lower', sending equity markets tumbling and traders running for 'safe-haven' Treasuries and Dollars. Prices rose to a morning Hi of 81.30, before drifting lower to a day-session close of 81.14, up 51 tics. The s/t trend remains 'positive' w/neutral momentum indicators. Traders will key on equity markets 'overseas' for further indication of 'risk-aversion', ahead of Tuesday's Existing Home Sales report. A higher open should find Resistance at 81.42 and 81.70, while an open below 81.02 may find Support at 80.74 and 80.34.

British Pound (BPU9):

Sterling opened lower at our Pivot level 1.6455 and continued lower against a higher DX as equity markets saw traders taking profit/risk off the table. Weaker Home Prices added to the weakness, sending prices to a daily low of 1.6317, before ending the day-session at 1.6342, dow 171 tics. The close below the 10-day MA changes the s/t trend to 'negative',w/ neutral momentum indicators. A lower open may find Support at 1.6268 and 1.6195, while an open above 1.6391 should find Resistance at 1.6464 and 1.6587.

Canadian Dollar (CDU9):

The CD opened lower at .8734 and followed most other major foreign currencies lower as the DX was bid higher by those seeking a 'safe-haven' from the equity market sell-off. The stronger DX sent commodity prices and the CD to a daily Lo of .8657, before bouncing towards the close to end the session at .8684, down 135 tics. The s/t trend remains 'negative' w/weak momentum indicators. A lower open may find Support at .8618 and .8552, while an open above .8723 should find Resistance at .8789 and .8894.

Published on  Tue, Jun 23 2009, 08:23 GMT