What’s Up, What’s Down: Spotlight on Currencies

Comments for November 10, 2011

Looking ahead to Thursday by reflecting back on Wednesday’s trading

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors

EC Woes Aiding the US Dollar??

CURRENCIES: 11/10/11 Sharply higher for the dollar index while lower to sharply lower for the Japanese Yen, British Pound, Canadian dollar,  Euro Fx, Swiss Franc and Aussie Dollar. The dollar settled sharply higher giving me a BUY SIGNAL aided by the financial problems in Italy which I mentioned before was on the horizon. This is even more serious than Greece and could threaten the EC since Italy has the 3rd largest economy (in the EC). Also, I don’t expect the Grecian situation to really be resolved except temporarily until its real issues are resolved along with several other governments. The euro and franc both gave me SELL SIGNALS after making their worst closes since early October. The yen continues to be hurt from its sharp drop on October 31st although it has been gradually retracing ever since. However, strong resistance looms around 13000.  The Canadian dollar also settled sharply lower(lowest close since 10/13) but just missing a sell signal although still in a long-term downtrend overall. The pound settled down sharply with 15867 a key price to watch in my opinion but the Aussie dollar gave me a SELL SIGNAL after its worst close since October 14th.BUY SIGNALS FOR THE BRITISH POUND AND DOLLAR INDEX. SELL SIGNALS FOR THE EURO FX, SWISS FRANC, AUSSIE DOLLLAR  AND JAPANESE YEN. CALL FOR DETAILS

For more Currency commentary, please visit my Currency Futures Update blog. (https://currencyfuturesupdate.com/)

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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.