Alaron Currency Comment

CHICAGO - Sep 3/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The EC opened lower at 1.4433 against the stronger DX as a weaker than expected drop in Retail Sales of -0.4% and a contraction in the composite PMI continue to weigh on   prices. The  DX came off its morning Hi and lifted the EC to 1.4484

The DX opened higher at 78.55, before sliding to a morning Lo of 78.24 as a short-covering rally in Gold sent commodity currencies higher.  

The BP opened lower at 1.7756 and dipped to 1.7716, before bouncing to 1.7804. A weak Consumer Confidence report and struggling economy will have to endure 5.0% interest rates to combat the growing inflation. The MPC rate meeting Thursday should leave rates 'unchanged', according to BOE Governor King.

The CD opened lower at .9328 as lower oil/metals prices and stronger DX continued to weigh on most major foreign currency markets. The BoC left short-term interest rates 'unchanged' at 3.0% and stated that the nation is "still close to the economy's production capacity". Prices rebounded after the statement to a morning Hi of .9453, before drifting lower towards the afternoon session.

The JY opened higher at .9220 and slid to .9205, before bouncing to .9240 on residual 'short-covering' by carrytraders and repatriation  of funds  invested in the Aussie and Kiwi.  

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Alaron Trading Corp. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. and/or STAT Publishing or its staff and/or management.

PageGen v1.0ef