SubscribeDaily Futures Commentary September 8, 2009
Tuesday, September 8, 2009
Greater demand for higher yielding assets is punishing the U.S. Dollar this morning. All major currencies are expected to open higher versus the Dollar. Renewed interest in higher risk assets is leading to speculative Dollar selling fueled by a G20 pledge to continue stimulus spending. Equity indices are surging boosted by low inflation and earnings momentum. Gold has also cracked the $1000 barrier which is helping to make owning the Dollar less desirable.
The September Euro broke through the August high at 1.4449 and surged to a new high for the year. Continued improvements in the Euro Zone economy are helping to attract strong buying interest as traders increase bets that the European economies will recover before the U.S. economy.
Strong speculative buying in the September British Pound has triggered a 50% retracement of the recent break. Traders are beginning to speculate that recent moves by the Bank of England are filtering through the U.K. economy while putting the economy on a path to recovery. The BoE meets on September 10th. Traders will be watching to see if the BoE makes any adjustments to its quantitative easing policy.
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