Alaron Currency Comment

CHICAGO - Mar 26/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The ECopened higher at 1.5672 and rose to a morning Hi of 1.5690 after a stronger than expected German Ifo business confidence index rose 104.8 from 104.1 in February. Expectations were for drop to 103.5. Prices retraced to a morning Lo of 1.5644 weaker equity prices saw carry-traders taking profit/risk off the table and covering short JY & SF positions. Prices bounced into the afternoon session and

The DX opened lower at 72.16 after the stronger than expected German Ifo data sent the EC higher, pressuring the DX to a morning Lo of 72.03, before bouncing to a morning Hi of 72.26. Prices drifted lower into the afternoon session as weaker than expected Advanced Durable Goods data and prospects of another rate cut weighed on prices.

The BP opened lower at 1.9860 and touched a morning Hi of 1.9862, before retracing to a morning Lo of 1.9795 as pressure to cut rates increases. Traders are looking for a 25bp cut as early as April's MPC meeting, closing the yield-gap with the EC.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

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