Alaron Currency Comment

CHICAGO - May 8/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The EC opened lower at 1.5315 and retraced to a morning Lo of 1.5285 after the ECB decided to keep rates 'unchanged' at 4.00%. Pressure from a higher Dollar, after the better than expected Jobless Claims report showing a decrease of 18,000 fewer on unemployment rolls weighed on the EC. Prices rebounded to a morning Hi of 1.5415 after ECB President Trichet's comments were 'hawkish' on keeping a close watch on the CPI until inflationary pressures  decrease to a comfortable level.

The DX opened higher at 73.80 and rose to a morning Hi at our initial Resistance level of 73.94 after a better than expected Jobless Claims report, showing a decrease of -18,000 on the unemloyment rolls.Prices retraced to a morning Lo of 73.43   and bounced to our Pivot level of 73.61 as we begin afternoon trading.

The BP opened higher at 1.9495 as the BoE left rates 'unchanged' at 5.00%. Prices dipped to a morning Lo of 1.9473 as the DX moved higher on better Jobless Claims. Prices bounced to a morning Hi of 1.9569, before sliding into the afternoon session.

The CD opened lower at .9858 and slid to a morning Lo of .9851 on a weaker than expected decrease in Housing Starts, down -12% and anticipation of a 'weak' job report on Friday. Prices bounced to a morning Hi of .9892, before sliding  back to a mid-day lo of .9837, as we enter the afternoon session.  

The JY opened higher at .9602 and slid to a morning Lo of .9592, before rebounding to a morning Hi of .9691. Prices drifted lower as we enter the afternoon session.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

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