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Stock Traders Ignore Weak Housing Data; Focus Shifts toward Weaker U.S. Dollar

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 26, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    Stock traders ignored the weaker existing home sales report and turned its focus on the U.S. Dollar which weakened because of increased demand for higher risk assets. This week’s testimony by Fed Chairman Bernanke may have set the tone for today’s rally. Earlier in the week, Bernanke said that interest rates would remain low for a prolonged period of time which may have triggered demand for higher yielding stocks.

    The rally on Friday put the March E-mini S&P 500 in a position to take out the recent main top at 1112.75. This breakout will turn the main trend to up on the daily chart.

    Treasury markets traded higher on Friday which was a surprise since the tone of the day seemed to be demand for risky assets. Today’s weaker than expected U.S. existing homes report provided much of the intra-day support. Investors gained more confidence in holding long positions this week after Fed Chairman Bernanke said interest rates would remain low for “an extended period”.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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