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

• Send
• Print
• Add To
• Rss

The Currency Futures Report

469a9ecc-b39b-4cd4-a689-1d5975046ab9

2

0

Dollar 'Gives−Back' Gain on Late Equity Bounce

Tue, Jul 7 2009, 10:29 GMT
by Bob Kozak

Alaron

Dollar Index (DXU9):

The Dollar opened higher at 81.05 as an increase in risk-aversion sent traders to the safe-haven of Treasuries and the Dollar Index. Concerns that the global recovery will falter as unemployment increases and consumer spending tightens sent global markets tumbling over-night. A smaller than expected bounce in the ISM non-mfg.index turned equities higher and sending the DX lower through to the close of 80.69, up 2 tics. The s/t trend remains 'positive' w/ neutal momentum indicators. This weeks G-8 meeting in Italy could see pressure from Russia and India to address the 'global ' currency reserve situation, i.e. Dollar. Longs should tighten 'stops' or buy 'puts' to reduces exposure. A lower open may find Support at 80.42 and 80.16, while an open above 80.79 should find Resistance at 81.05 and 81.42.

British Pound (BPU9):

Sterling opened lower at 1.6141 after the BoE announced that it may increase its program of asset purchases by $40B to help the faltering economy. As equity markets recovered, pressuring the DX , sterling rose to a day-session Hi of 1.6269, before drifting to a day-session close of 1.6249, down 171 tics. The s/t trend remains 'negative' w/ neutral momentum indicators. Traders will key on equtiy markets 'over-seas' to test the late day recovery and see if we see an increase in risk-appetite or revert to risk-avoidance. A higher open should find Resistance at 1.6466 and 1.6512, while an open below 1.6383 may find Support at 1.6337 and 1.6254.

Published on  Tue, Jul 7 2009, 10:30 GMT