SubscribeDaily Futures Commentary July 17, 2009
Friday, July 17, 2009
Overnight events are encouraging safe-haven buying in the Forex markets in Europe. CIT bankruptcy concerns and explosions at hotels in Jakarta are sending investors to the safety of the U.S. Dollar and September Japanese Yen.
The flight-to-safety rally is also triggering weakness in emerging market equities. The developing fear mentality could spill over into the U.S. Forex and equity market openings where traders are already nervous about today’s U.S. Building Permits and Housing Starts Reports.
Major earnings reports also have investors worried as Dell, Bank of America, Citigroup and General Electric are all set to report. Earnings have moved the Forex and equity markets all week as demonstrated by the increased demand for higher risk assets following bullish reports from Goldman Sachs, J.P. Morgan and Intel Corp. earlier in the week.
Today is also an option expiration day in U.S. equity markets. This could increase volatility which may have a direct effect on trader demand for risky currencies. Weaker than expected government reports are most likely going to hurt the September British Pound and September Euro as traders will buy the Dollar on the notion that the …
Read More …
Loading ...
