SubscribeDaily Futures Commentary July 23, 2009
Thursday, July 23, 2009
The U.S. Dollar is slipping a bit against the Euro overnight as it continued to trade inside its almost 60 day range. Although it has been lingering at the top of the range, buyers have been reluctant to buy or sell heavily at this high level. The technical momentum hasn’t been there either to drive it through the high for the year at 1.4327. Buyers have backed away on each approach because no one seems to want to print the high tick without solid evidence the Euro Zone is clearly on the road to recovery.
The recent rally in the September Euro has been driven by gains in the equity markets. Investors have been exiting the safer currencies during this time of stock market expansion. This week’s gains have for the most part been limited by the choppy action in equities, preventing the Euro from surging to the upside. The selling pressure that hits the Euro each time the market approaches the 60 day high could be an indication that equity markets are getting close to a top.
Fed Chairman Bernanke’s comments this week regarding inflation have also …
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