Daily Futures Commentary October 30, 2009

Friday, October 30, 2009

The U.S. Dollar is rallying after trading mixed most of the night. Traders are trying to decide if yesterday’ strong rally in the Forex markets was a knee-jerk reaction to the better than expected U.S. GDP Report or if it represents a resumption of the uptrend.

This morning there are several reports starting with Personal Income and Personal Spending. Most analysts feel these two reports will be negative as the weak economy and high unemployment weigh on consumer income and spending habits. The Chicago PMI and Michigan Sentiment Reports due at 8:45 CDT and 8:55 CDT respectively are going to be market movers. Traders will be particularly interested in seeing whether the Chicago PMI number can reach 50 or higher.

The Dollar traded weaker yesterday after the U.S. Third Quarter GDP came out better than expected. Looking at the chart formations, however, it doesn’t look like any markets made any significant changes in trend. It looks as if traders were adjusting positions after the Dollar rallied earlier in the week. A rally today in the Dollar will be a strong …
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