The Dollar remains near the prior session’s lows despite a mix of positive and negative economic newsflow this week and in the face of a noted deterioration in the European economic outlook. In other words, theDollar has generally remained out of favor despite unfavorable views toward many other economic regions. Attimes yesterday, the Dollar saw some definitive inflows but surprisingly the Dollar turned down after seeing USclaims breakout to the lowest levels since 2007! In retrospect, it would almost seem like the industrial productiondata was leaked because the Dollar fell and Treasuries rose sharply after the claims soothed economic sentimentbut before the surprisingly weak US Industrial Production figures was released. While the Dollar might derivesome support from minimally positive housing starts and permits data later this morning, the failure to live up tominimally positive expectations could quickly rekindle selling interest in the Dollar. However, underpinning theDollar are even greater fears of slowing in Europe and ideas that the ECB will ease next month.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The daily closingprice reversal down is a negative indicator for prices. The market tilt is slightly negative with the close under thepivot. The next upside objective is 80.56. The next area of resistance is around 80.30 and 80.56, while 1stsupport hits today at 79.89 and below there at 79.73.