SubscribeDaily Futures Commentary September 3, 2009
Thursday, September 3, 2009
The U.S. Dollar is called weaker this morning. An equity market rally in China has helped boost demand for higher risk assets overnight. Both technical and fundamental factors are helping to contribute to the weakness in the Dollar.
The September British Pound confirmed yesterday’s closing price reversal bottom with a follow-through rally overnight. Yesterday’s bottom and strong move to the upside was triggered by a better-than-expected U.K. Services Report which showed its biggest jump in 2 years. This bullish news was a sign that the U.K. economy was beginning to recover from the recession. Shorts covered on the news while driving the market into a minor resistance area at 1.6369 to 1.6430. Oversold technical conditions also helped boost prices.
Resistance could develop today between 1.6369 to 1.6430. A close over 1.6430 sets up this market for a further rally to 1.6577. The main trend remains down until 1.6627 is taken out. Although the U.K. economy has been showing signs of improvement lately, traders expect a sideways market to develop as we get closer to the next Bank of England meeting scheduled for September 10th.
This morning the …
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