Thursday, December 10, 2009
Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data
and the odds of an interest rate increase by the Federal Reserve.
This morning, traders will get their first look at the U.S. employment situation following last week’s surprise drop in the unemployment rate. This report has a chance to set the tone
for the day.
Stronger demand for equities is driving up the December E-mini S&P this morning. Traders seem to have shrugged aside debt concerns in Dubai, Greece and Spain while renewing their
interest in higher yielding assets. Yesterday’s closing price reversal bottom at 1085.00 will be confirmed on a move through 1097.00. The chart pattern indicates that 1102.00 to 1106.00 are potential
upside targets.
Renewed interest in higher yielding assets is helping to push March Treasury Bonds and Notes lower. Traders could ask for higher yields during today’s 30-year Bond auction. This would
put additional pressure on these markets later in the …
