SubscribeDaily Futures Commentary November 17, 2009
Tuesday, November 17, 2009
The U.S. Dollar is trading higher overnight based on oversold technical conditions. Yesterday’s comments from Fed Chairman Bernanke regarding the Dollar may also be triggering a
short-covering rally as well a position-lightening. The overnight action has not been sufficient enough to call for a change in trend.
Yesterday, Bernanke expressed concern for the Dollar, which was a surprise to some since the Fed Chairman rarely talks about the U.S. currency. In his speech, he said he remains
committed to a strong Dollar like the Treasurer usually says, but he failed to come up with a strategy to boost the greenback. In addition, he talked about interest rates remaining “exceptionally
low” for “an extended period”. It’s hard to believe that the long-term down trend will change for the Dollar given that interest rates are expected to remain low.
The short-term trend may reverse temporarily because traders usually get nervous whenever a central bank official talks about their currency. This usually leads to counter-trend
trading as investors reel …
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