Rising Global Equity Markets Pressure Dollar Overnight
Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal Reserve.
This morning, traders will get their first look at the U.S. employment situation following last week’s surprise drop in the unemployment rate. This report has a chance to set the tone for the day.
Stronger demand for equities is driving up the December E-mini S&P this morning. Traders seem to have shrugged aside debt concerns in Dubai, Greece and Spain while renewing their interest in higher yielding assets. Yesterday’s closing price reversal bottom at 1085.00 will be confirmed on a move through 1097.00. The chart pattern indicates that 1102.00 to 1106.00 are potential upside targets.
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