Currencies

Last night the US dollar went up and so did the oil price. That was too much for Wall Street, which took profits before a SEC announcement accelerated losses in financials. The Dow fell 200.

According to Danske Bank the multi-year trend of the US dollar falling relative to the euro is almost over, so it has looked at what emerging market currencies will strengthen with the greenback.

A housing warning from Bernanke, poor financial profit results and US$122 oil ensured the Dow rallied 50 points last night.

Signs are turning more positive for the US dollar as the Fed is regarded as close to the end of its rate cutting cycle but it remains too early for a sustained rally.

The Dow fell 88 points last night as the Yahoo deal fell over, oil hit US$120, and doubt was raised about BA’s bid for Countrywide.

A good jobs report kicked off a day that ended in mixed book-squaring ahead of the weekend.

The Dow returned to break 13,000 last night as the market picked out the good from mixed economic data, cementing the idea that the Fed is on hold. Commodities crashed.

Markets were confused and disappointed last night as a 25 point cut was accompanied by a non-committal statement. A strong rally evaporated.

Weak economic data offset reasonable earnings reports ahead of tonight’s Fed decision.

Wall Street traded in a narrow range last night as all markets squared up ahead of the Fed decision on Wednesday.