Risk Appetite Driving U.S. Dollar Lower

Greater demand for higher risk assets ishelping to drive the U.S. Dollar lower into the mid-session. Today’s rally isbeing led by the British Pound and the commodity-linked currencies. Aturnaround early in the session has also underpinned the Euro.

Greater demand for higher risk assets ishelping to drive the U.S. Dollar lower into the mid-session. Today’s rally isbeing led by the British Pound and the commodity-linked currencies. Aturnaround early in the session has also underpinned the Euro.

Traders are driving up U.S. equitymarkets in anticipation of today’s quarterly earnings report from Intel. Equitymarkets opened higher this morning bolstered by good earnings news from Alcoaand CSX Corp.

The Euro mounted a strong turnaround afterit was reported that Moody’s downgraded the debt of Portugal. The initial reaction wasto the downside, but investors decided to ignore this news and focus on U.S. earningsinstead.

A report showing U.K. inflation had risen promptedthe start of a short-covering rally overnight. Traders now believe thatinflation could become the key issue which derails the recovery and are pricingin a possible rate hike by the Bank of England.

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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