Overconfident Euros
Euro FX futures
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PowerRating) and
Swiss francs
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PowerRating) are plunging swiftly, down .00910 and .0074
respectively, accelerating after hitting their Pullback From Lows
triggers. The US added four times more jobs than expected last month, while at
the same time, Europe business confidence fell to a 15-month low.Â
The news alters perceptions that Europe will outperform,
relatively, the US economy. There is also the view that traders have not fully
factored in how a slower-growing US will effect Europe’s economies. Much of
Europe’s economic rebound has been from exports to the US. The US is the
destination for approximately 14% of Europe’s exports.Â
Today’s closely watched jobs report is also altering perceptions about how
aggressively the Fed will have to stimulate the economy. T-bonds
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PowerRating)
readjusted by falling 10/32 to 104 26/32 and
10-year notes
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PowerRating)Â slipped 8/32 to 105 15/32.
Heating fuel traders believe that a blast of arctic cold
will descend into the northern central part of the US, returning temperatures to
record cold levels seen in the last two months of 2000. Natural gas
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popped open, came back to fill the morning gap and then bolted back to set new
highs. Nat gas is currently trading on its high of the session, up .370 at
6.750.
Soybean oil
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BOH1 |
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PowerRating) is remaining in a tight
range near the high of yesterday’s expansion bar, a bullish sign. Bean oil’s
sharp rise on the prospect of a European Union ban on animal fat in livestock
feed rations. Bean oil is up .0300 at 15.0400.
Nasdaq 100 futures
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NDH1 |
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PowerRating) are down but are moving higher after touching
down to a 10-day low. The contract has moved down through one limit down level.