U.S. Stocks Rise Indicating Demand for Risk; EUR USD Gains Ground

Firmer U.S. equity markets are triggering renewed demand for risk at the mid-session. This is helping to weaken the Dollar while fueling a rally in the higher yielding Australian Dollar and New Zealand Dollar.

Firmer U.S. equity markets are triggering renewed demand for risk at the mid-session. This is helping to weaken the Dollar while fueling a rally in the higher yielding Australian Dollar and New Zealand Dollar.

The EUR USD is also gaining strength on renewed talk of a possible bailout of Greece by the European Union. Without any major economic reports to guide it, the Euro remains sensitive to any news regarding Greece.

Short-covering triggered by the weakening Dollar is helping to boost the GBP USD off its lows. Although this market is up off the low, the fundamentals continue to remain weak.

The pick-up in demand for higher yielding assets is helping to support the USD JPY. The firming Euro is helping the USD CHF erase earlier gains. The better the Euro, the less chance of an intervention by the Swiss National Bank.

Demand of higher yielding assets helped turnaround the AUD USD and NZD USD after earlier weakness. Falling gold and crude oil prices weakened the Canadian Dollar, but the turnaround in both of these markets is pressuring the USD CAD.

Traders should watch for a strong surge in U.S. equity markets to trigger a break in the U.S. Dollar.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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