Intraday Market Thoughts

Archived IMT (2009.07.01)

by Ashraf Laidi
Jul 1, 2009 18:06

Latest sell-off in the dollar is being attributed by traders to Reuters says the euro's jump 20 mins ago was due to sources saying China demanded G8 to discuss new global reserve currency at next week's G8 meeting. Euro usually rallies sharply on such anti-dollar news. Thin trading volumes increasing the choppiness of trading, but oil is refusing to rally on the news and testing the 68.80s. Traders watch out from renewed clash between the unemployment rate and the payrolls. Last month, markets cheered the smaller than exp decline in payrolls, prompting US equity futures higher, only to reverse all gains on focus towards the jump in unemp rate to 9.4%. As stocks fell, dollar pushed higher along with the yen. if payrolls come in within expectations of -345K and unemp rare rises from 9.5%, then we cannot expect any further gains in equities. S&P500 resistacne remains at 930-933.


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