Economic Focus
Traders are focusing on economic growth rather than
interest rate differentials in pricing currencies. The quarter-point rate-hike
in Europe this week took the euro, Swiss franc and pound to contract lows. But
weaker-than-expected economic figures Friday morning in the US are prompting a
big reversal in these currencies vis-Ã -vis the dollar.
Alerting traders to the possibility of a reversal was a Turtle Soup Plus One Buy
setup in Swiss franc
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PowerRating) futures, which have rallied as many as 80
ticks in Friday’s session, and are now up .0063 at .5811.
Euro FX
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PowerRating) futures are up .01170.
Going the other way,
September dollar index futures
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PowerRating) are taking a hit as the other major
currencies all rally. DXU0 is down 1.14 to 111.43.
The economic data showed an unexpected hike in
unemployment and a weaker NAPM reading (under 50). These figures are a plus for stocks because
it almost assures that the Fed will not raise rates until next year.
September S&P futures
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PowerRating),
NASDAQ 100 futures
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PowerRating), and Dow futures
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PowerRating) all tagged their
highest levels since April.
Grains may have put in an intermediate, or swing high at
these levels. Soybeans and corn are down 2 cents each.