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Weakening Equities Leads to Stronger Dollar

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 12, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Stock Indices
    Stock index futures are trading higher at the mid-session, but well off their highs. Today’s fast surge in the markets put them into overbought territory, giving investors an excuse to take profits. Throughout this entire rally, traders have not been too fond about chasing markets higher, so a correction from current levels will not be unusual. Short-term, this market should continue to move higher as long as the Fed keeps interest rates low and the world’s continues to use the Dollar as a carry currency.

    Treasury Futures

    Treasury futures are trading higher. Cash markets are closed because of the Veteran’s Day holiday. This is helping to give speculators a free look at the upside until hedging pressure returns tomorrow. The weakening equity markets are also helping to contribute to the strength.

    The Dollar

    The Dollar is mounting a comeback after hitting a 15-month low against a trade-weighted basket of currencies early this morning. The December Euro once again failed in its attempt to break out over the recent top at 1.5062. The December British Pound is under pressure because of comments from the Bank of England. Early this morning the BoE hinted that a recovery may be starting but it may take a lower currency and more quantitative easing to revive the economy. Falling equity markets and a flat crude oil trade are helping to weaken the December Canadian Dollar.

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

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