Why The Dollar Is Dropping
The dollar fell for an eighth day against the yen, its longest drop in
three years. Reports showing consumer confidence sliding to its lowest level since
1993 and the economy growing less than expected in the third quarter have
driven the dollar down more than 2% against the euro and yen in the past two
weeks. The Dec. dollar
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Dec. Japanese yen
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$1 per euro for the first time in more than three months as an increase
in the US
jobless rate heightened concern that a slowing expansion will curb investment in
the world’s biggest economy.
On the first day of November trading, the futures put on a surprise performance. US stocks rose as
investors anticipated the Federal Reserve will cut interest rates next week,
stealing the show from Treasuries. Computer-related shares such as
Intel
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on the tech-heavy Nasdaq 100. The Dec. Nasdaq 100
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above the 1000 level, which ended an impressive week. NDZ2 closed at 1020.50 up
28.50 a 2.87% gain.
Not to be outdone, the Dec.
S&P 500 futures
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above the 900 level. In today’s trade, the 900 level was broken, but SPZ2 ended
just below 900 at 898.50, up 13.59, a 1.54% rise.
The Dec. 10-year note
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30-year bond
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to close at 110 ’11. USZ2 lost – ’10 on the day.
In
the metals, December copper
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resistance level. On the daily chart, copper touched the 50% retracement level
(.73) this is drawn from the June high to the Oct. low. HGZ2 closed at 72.59 up
.90 or 1.26. Dec. gold
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back to close at $319.19 an ounce up .80. And Dec. silver
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tried to rally above its 4.55 resistance, but ended lower on the day losing .02
at $4.49 an ounce.
Trading at the Chicago
Board Of Trade (CBOT) saw positive gains in wheat, corn and soybeans. Brazil
lifted the temporary ban on US wheat which may have added a psychological lift
to the wheat market. Dec. wheat
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$4.13 1/2 a bushel, a 2.80% increase. Jan. soybeans
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to break above the 5.70 resistance level, but ended just below that point at
$5.68 3/4 a bushel up 2.25 cents. And Dec. corn
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at $2.47 1/2 a bushel.
In the energies, crude oil was little changed
after Russia said the United Nations was close to an agreement that would allow
the return of weapons inspectors to Iraq. The US will present a revised resolution to the UN next week after spending
two months seeking UN approval for an attack on Iraq if it interferes with
inspectors. Russian Foreign Minister Igor Ivanov said the UN Security Council
has moved closer to a resolution. Oil fell 11% last month on reduced
expectations for military action.
Crude oil for December
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barrel on the New York Mercantile Exchange. Prices rose 8 cents this week. Oil
prices have dropped 14% from a 20-month high of $31.39 in September.
According to traders, there is a gasoline inventory concern and the reason that
oil prices were kept from steeper losses today was a rally in gasoline,
which rose on strengthening demand and falling inventories. Dec. unleaded
gasoline
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of 1.04%. The Dec. heating oil contract
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and retreated down to 74.14 a gallon, a loss of .80 of a cent. And Dec.
natural gas
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