Alaron Currency Comment

CHICAGO - Sep 15/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The JY opened higher at .9497 as turmoil in the financial markets led to continued liquidation by carry-traders and funds who borrowed JY  to purchase higher yielding assets. Prices rose to a morning Hi of .9529, before  sliding to .9448 and bouncing into the afternoon session.  

The DX opened higher at 79.71 and slid to a morning Lo of 79.26 as traders adjust positions in a volatile financial sector. Lehman Bros., Merrill Lynch and AIG continue to have ongoing concerns that contribute to how the financial markets will fair at the end of the day. A flight to 'quality' is benefitting the DX as traders seek U.S. Gov't Securities to reduce exposure to falling equity markets.

The BP opened lower at 1.7730 and slid to our Pivot level of 1.7694, before rising to a morning Hi of 1.7843. Prices drifted lower into the start of afternoon trading as the DX benefits from flight to quality buying of U.S. Government Securities.

The CD opened lower at .9340 and slid to a morning Lo of .9306, before rising to a mid-day Hi at our Pivot level of .9375. Lower oil prices and concerns over the U.S. financial markets, Canada's largest trading partner continue to weigh on prices.    

The EC opened lower at 1.4087 and slid to a morning Lo of 1.4048, before bouncing to a morning Hi of 1.4162 as traders adjust to volatile financial markets.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

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