SubscribeDaily Futures Commentary September 14, 2009
Monday, September 14, 2009
The U.S. Dollar is expected to open higher across the board following a sharp rally overnight against all major currencies. The rally in the Dollar started in Asia following a sell-off in the Japanese and Chinese stock markets.
Some analysts attribute the break to the return of traders from summer vacation while others attribute the weakness to the possible “economic war” brewing between the U.S. and China.
Although the traditional end of summer vacation is Labor Day, last week featured light volume which was an indication that many traders were still on the sidelines. Last week’s huge sell-off in the Dollar was discounted by some who felt the light volume indicated the absence of a major seller. Dollar bears basically had their way with the Dollar. Last night’s action indicates that last week’s action may have been overblown and that the Dollar may rally back to a more acceptable valuation.
Traders cite the confusion over the strength of the global economic recovery as a reason to buy the Dollar. Some feel that there is not enough evidence of a strong recovery in the world to be too …
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