Friday October 30, 2009 - 12:43:05 GMT
Share This Story
Forex Hound - www.forexhound.com
Dollar Rallies as Traders Turn Risk Averse Overnight
The Dollar is showing signs of strength this morning. This could be an indication that traders have out yesterdayâ€™s friendly GDP Report behind them and are looking at the future of the economy. The Dollar traded weaker yesterday after the U.S. Third Quarter GDP came out better than expected. Looking at the chart formations, however, it doesnâ€™t look like any markets made any significant changes in trend. It looks as if traders were adjusting positions after the Dollar rallied earlier in the week. A rally today in the Dollar will be a strong indication that traders are becoming more risk averse.
December Gold is trading lower because of the stronger Dollar. Technically this market finished a 50% retracement of the $1072.00 to $1026.90 range. The upside objective at $1049.40 stopped the rally. The strength of the Dollar will dictate which direction gold moves today.
December Crude Oil is feeling downside pressure. The weakness overnight reflects the fact that traders are looking at the bearish supply and demand data. Speculation, higher equities and the lower Dollar had been driving crude oil higher. This week a shift in sentiment is taking place that is driving investors out of higher yielding assets. This could trigger a break to 73.00 to 71.70.
Equity futures nearly completed a 50% retracement of their recent declines. The speed of the rally indicates that it was mostly short-covering rather than new buying. Yesterdayâ€™s friendly GDP Report helped trigger the rally, but it was based on old data. Traders will now be looking at whether the economy will be able to sustain the gains if the Fed begins to end its stimulus programs. Many investors believe that stock prices have anticipated a fast, steady recovery when in fact it may be slow and rough.
Treasury futures could give back some of yesterdayâ€™s losses if equity prices weaken. If demand drops in higher yielding assets then look for lower yielding assets like the December Treasury Bonds and December Treasury Notes to benefit.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."