Alaron Currency Comment

CHICAGO - Nov 5/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The DX opened higher at 85.555 and rose to a morning Hi  of 85.76, before retracing to a morning Lo of 84.445, as traders absorb the ADP employment report showing a loss of 157,000 private sector jobs in October and a weaker than expected ISM Non-Mfg report, suggesting further stimulus may be needed at the Dec.16th FOMC meeting. Prices recovered to a mid-day level of 84.94 as we head into the afternoon session.

The BP opened lower at 1.5885, before taking advantage of DX weakness and  climbing to a morning Hi of 1.6166. Prices drifted lower into the start of the afternoon session as the DX bounced higher.

The CD opened lower at .8658 and rose to a morning Hi of .8707 against the  softer DX, before sliding on lower oil/metal prices to a morning Lo of .8566. Prices bounced to a mid-day level at our Pivot of .8597 as we begin the afternoon session.  

The EC opened lower at 1.2837 and slid to our Pivot level of 1.2822, before rising to a morning Hi of 1.3096 on the weaker DX. As the DX moved higher, the EC drifted lower into the afternoon session at 1.2984.

The JY opened lower at 1.0130 and rose to a morning Hi of 1.0169, as carry-traders cover short positions, after equity prices retrace along with the DX. As the DX bounced off morning Lo's, the JY fell to a morning Lo of 1.0063, before rising to our initial Resistance level of 1.0156 as we enter the afternoon session.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

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