Brtitish Pound (BPZ8):

Sterling opened lower at 1.4831 as pressure on the weak economy continued, sending prices to a mid-day Lo of 1.4695. The need for further rate cuts sent prices lower throughout the session, hitting a mid-afternoon Lo of 1.4551, before bouncing into the close and closing the day at 1.4672, down 274 tics. The s/t trend remains 'negative' w/ over-sold momentum indicators. Prospects for lower rates should continue to weigh on the BP as the economy struggles to recover. A lower open may find Support at 1.4488 and 1.4303, while an open above 1.4735 should find Resistance at 1.4919 and 1.5166.

Dollar Index (DXZ08):

The DX opened lower at 88.03 and slid to a morning Lo of 87.73 after a weaker than expected Jobless Claims showed an increase of 32K unemployed, bringing the total to a 516K, the highest level since September 2001. Continued weakness in the BP and news of Germany confiming the onset of a recession helped the DX climb to a mid-day Hi of 88.48, before sliding into the afternoon session as traders took on more 'risk' by buying equities and rotating out of the 'safe-haven' of DX. Prices slid to a daily Lo of 87.215, before ending the day at 87.38,  down 66 tics. The s/t trend remains 'positive' w/ topping momentum indicators. The topping pattern could trigger some profit/risk taken off the table, but pressure remains on most major foreign central banks to lower rates more than the Fed, suggesting traders buy the 'dips'. A lower open may find Support at 86.85 and 86.32, while an open above 87.74 should find Resistance at 88.27 and 89.16.

Canadian Dollar (CDZ8):

The CD opened higher at .8103 and rose on DX weakness to a morning Hi at our Pivot level of .8156. As the DX recovered, the CD slid to a mid-day Lo of .8025, before rising on solid gains in oil/metals to a close of .8150, up 70 tics.The s/t trend remains 'negative' w/ neutral momentum indicators. The lower DX and higher oil/metals prices could see further short covering. A higher open should find Resistance at .8204 and .8257, while an open below .8114 may find Support at .8061 and .7971. 

Euro Currency (ECZ8):

The EC opened higher at 1.2501 and rose to a morning Hi of 1.2565 against a weaker DX. As the DX recovered on continued 'flight-to-quality' buying, the EC retraced to a mid-day Lo of 1.2431. Prices recovered to 1.2543 as we move towards the close of the session, before a late day rally sent prices to a close at our secondary Resistance level of 1.2675, up 186 tics. The close above the 9-day MA changes the s/t trend to 'positive' w/ improving momentum indicators. With Germany in a 'recession' and further rate cuts needed to stimulate the economy, the short-covering rally may present an opportunity to re-establish 'short' positions. A higher open should find Resistance at 1.2799 and 1.2922, while an open below 1.2585 may find Support at 1.2462 and 1.2248.

Japanese Yen (JYZ8):

The JY opened lower at 1.0425 and slid to a morning Lo of 1.0380, before rising to a mid-day Hi of 1.0579. Prices retraced to 1.0327 as equity markets received a 'short-covering' boost from 'undervalued' energy companies as news of an OPEC emergency meeting sent oil prices higher. Prices bounced to a close of 1.0376 to end the day down 96 tics. The s/t trend remains 'positive' w/neutral momentum indicators. A continuation of the U.S. equity rally should entice carry-traders to take on 'risk' and short JY to buy higher yielding foreign currencies. A lower open may find Support at 1.0276 and 1.0175, while an open above 1.0427 should find Resistance at 1.0528 and 1.0679.