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In overnight trading, the Euro continues to mount an impressive rally. On Tuesday, the Federal Open Market Committee gave the green light to traders to go long as it hinted that the Fed is ready to execute whatever it takes to keep the U.S. economy from derailing.

Stocks Rally after Irish Tensions Ease

Posted by Futureshound on September 20th, 2010

U.S. stock-index futures are called higher this morning. After a closing price reversal top on Friday, the December E-mini S&P 500 stands poised to challenge last Friday’s high at 1132.75, but first must take out a Fibonacci retracement level at 1128.00.

The U.S. Dollar gave back much of its earlier gains Tuesday afternoon after the central bank’s Federal Open Market Committee revealed a disappointing outlook for the U.S. economy.

A combination of optimism in the Euro Zone and dovish commentary from the Federal Reserve is helping to pressure the U.S. Dollar overnight.

U.S. equity markets are called better as tensions have eased regarding Goldman Sachs’ legal problems. Stock traders are also a little more optimistic because of the opening of some air routes in Europe. Technically, all three indices are currently retracing a little more than 50% of the recent decline. This is a key area as the markets are in positions to post secondary lower tops.

U.S. stock indices are trading higher overnight as sovereign debt concerns eased a little over developments ahead of the European Union summit. Last night German Chancellor Angela Merkel said she would back aid for Greece with International Monetary Fund involvement as a “last resort”.

U.S. stock index futures soared after Abu Dhabi announced a $10 billion infusion into cash strapped Dubai World. This news helped alleviate some of the concerns that have been holding back the rally in equity markets since the Dubai debt news broke in late November. December E-mini Dow futures rallied to a new high for the year.

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