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Stronger Dollar Fails to Break Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 9, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Buyers continued to push U.S. equity markets higher as the stronger Dollar failed to break stock trader optimism. Early in the trading session, equity traders were nervous about buying stocks because of comments from Fed Chairman Bernanke regarding a possible interest rate hike and a shift toward a tight monetary policy. Once traders realized that these events have some time to develop, they once again began to focus on the short-term and third quarter earnings, driving equity markets higher.

    U.S. Treasury market traders acted more pessimistically toward Bernanke’s comments by driving down December Treasury Bonds. Some of this selling was related to the weak 30-year auction results from the previous day.

    The U.S. Dollar managed to mount a strong recovery, boosted by the hawkish comments from Bernanke. The Dollar still finished lower, but well off its lows. Throughout the week, the pressure was on the Dollar, but with the strong recovery on Friday, traders are now looking for spillover buying to drive prices higher early next week. The surprise of the day was the strength in the Canadian Dollar. The December Canadian Dollar soared to the upside following a better than expected Canadian Unemployment Report.

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

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