December 28, 2009
Higher global equity markets are helping to boost demand for higher yielding assets, leading to a rise in U.S. stock index futures. The lack of any significant economic reports is
giving traders a free ride to the upside. There is no strong resistance at this time.
Treasuries are trading lower once again. Demand for higher yielding assets and a weaker Dollar is helping to pressure March Treasury Bonds and March Treasury Notes. The T-Bonds are
trading below a retracement level at 115’08. Regaining this area could trigger a short-covering rally.
The U.S. Dollar is down overnight, pressured by fresh demand for higher yielding assets. A boost in global equity markets is the main catalyst behind the fall in the Greenback.
Technical factors are also contributing to the Dollar’s weakness. Overbought conditions are setting up the charts for a meaningful retracement of recent gains.
The March Euro is up overnight. A new main bottom has been formed at 1.4215. The chart pattern suggests that upside momentum may be building with a possibility for a rally back to
1.4681 …
