The Wall Street Journal Dollar Index started dropping at 10:55 A.M. as Obama began talking to business leaders. He essentially said nothing new; but the wording that he used was apparently very well crafted by his advisers in an attempt to not tank the stock market. Risk popped to the upside and the S&P 500 went from being down 7 points to being up 1 point and the Dow Jones has climbed to +70.
After he finished speaking at 11:35 A.M., the WSJ dollar index immediately began climbing again (aided in part by a weak Yen) and retraced some of its losses. I think the key to trading the currencies markets from today will be to watch Equities. If the S&P 500 dips back into negative territory and starts heading towards 1400, then the Aussie and Kiwi may be attractive shorting opportunities. If the stock market continues to climb for the rest of the day, we may see a breakout to the upside of this consolidation on the NZD/USD
No comments:
Post a Comment