SubscribeDaily Futures Commentary September 28, 2009
Brewer Futures
Monday, September 28, 2009
The U.S. Dollar is expected to open mixed this morning. The Greenback is showing strength versus the major European currencies and weakness against Asian-Pacific markets.
The Dollar is showing strength mainly because oversold conditions and economic uncertainty have encouraged investors to lighten up on their positions in higher yielding currencies and curtail fresh demand.
The G-20 wrapped up its meeting this weekend by agreeing to give emerging markets more influence at the International Monetary Fund and the World Bank. Look for the roles of the emerging markets to increase once the global economy begins to recover. This could help lay the foundation for a diminished role for the U.S. Dollar as the world’s reserve currency.
Technical factors are helping to weaken the December Euro overnight. Last week’s close formed a weekly closing price reversal that was confirmed overnight. This formation often leads to the start of a 2 – 3 week correction. Losses could be limited as European bond markets are beginning to show that traders expect the European Central Bank to raise rates soon.
The December British Pound …
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