SubscribeDaily Futures Commentary November 20, 2009
Friday, November 20, 2009
Lower global equity markets are helping to push the U.S. Dollar higher as investors shun risky assets for a second consecutive day. Traders began getting nervous earlier in the
week
after Fed Chairman Bernanke mentioned the level of the Dollar in a speech. This was followed by supportive comments from European Central Bank President Trichet who used a speaking opportunity to
announce his agreement with Bernanke and to try to talk up the Dollar.
The recent pace of the decline in the Dollar has been giving traders a clue that sentiment may be shifting. This shift started at about the same time that China was talking about
changing the value of the Yuan. While China remained hard-nosed about its currency this week when pressed by President Obama to change its ways, speculators were beginning to bet that China would
eventually cave in to international pressure and make a small adjustment in how it pegs its currency.
The combination of comments from Bernanke and Trichet along …
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