Alaron Currency Comment

CHICAGO - Nov 12/08 - SNS -- Following is the currency futures comment from Alaron Trading Corp.

The BP opened lower at 1.5203 after BoE Governor King stated that they will do whatever it takes to relieve recissionary pressure, inferring further rate cuts are likely. Prices continued lower against the stronger DX, sliding to 1.4875, before bouncing into the afternoon session.

The DX opened higher at 87.86 as trader sought a 'flight to quality' as traders expect a possible run on Russian Banks and comments from the ECB and BoE that further rate cuts are likely. Prices rose to 88.22 and drifted lower as we begin the afternoon session.  

The CD opened lower at .8236 and slid lower against the stronger DX and weaker energy/metal markets. Prices drifted to a morning Lo of .8081, before bouncing into the afternoon session.

The EC opened lower at 1.2509 and slid to 1.2446 against the stronger DX after  Tuesday's dovish comments from ECB President Trichet stating that further rate cuts  are likely. Prices bounced to 1.2506 as we begin the afternoon session.  

The JY opened higher at 1.0297 and continued to rise to a mid-day Hi of 1.0593 as risk-aversion saw carry-trades unwind, leading to a short-covering rally. Prices drifted lower into the afternoon session.

Bob Kozak

Alaron Research Team

800.462.4691

bkozak.com

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