The DJIA completed the Global Equity Market rally today currently ahead 140 points to 10,410. The rally during the Asian and London session got underway as the Asia Pacific Economic Cooperation group universally agreed to maintain and support whatever measures are necessary to put the global economy back on track.
Ben Bernanke, Chairman of the Federal Reserve said that borrowing cost will remain low to offset pains being felt in the labor and lending markets. Those remarks coupled with a better than expected Retails Sales print provided a real boost for the markets. This move higher sent the U.S dollar tumbling as the DXY is at a critical levels of support here around 74.90.
Gold made huge gains today, up nearly $19 to 1,137. Corn, Wheat, and Soybeans were also up smartly today. Oil finished the day up to $2.80 to 78.77 while continuing to consolidate just below $80 a barrel.
It will be a busy day in the U.S tomorrow as PPI, TIC Flows, and Industrial Production figures are set to print tomorrow. In the U.K, CPI figures are due out tomorrow. We do not anticipate any of these releases to provide much strength for the greenback. As the equity rally will look to continue, it appears that further dollar weakness will as well.
Upcoming Forex Events for November 17, 2009
CHF Retail Sales (YoY) Forecast 1.00% Previous -1.00%
GBP CPI (YoY) Forecast 1.40% Previous 1.10%
USD TIC Net Long-Term Transactions Forecast 30.00B Previous 28.60B
AUD Wage Price Index (QoQ) Forecast 0.70% Previous 0.80%