2 May 2008 - 12:08Market Commentary 5/2/08

The dollar did rally as I figured it would after breaching yesterday’s key inflation figure, breaching the key 2% level. The dollar was already up on the morning and this helped propel it further.  Today’s  employment report  showed that  another 20,000 jobs have been slashed but this was considered to be “good” by the markets who were expecting much worse news. So the dollar continued it’s rally today however it sputtered and stalled at 10 am when factory orders came out. The number was good but the market figured the dollar had already appreciated enough this week and began to sell off. It was sold at noon and just now prior to 1 pm as European players dumped it and got out for the weekend. I don’t think it will do much for the rest of the day. Hopefully you already made your money today and don’t need to try to force a trade now in this quiet market.

I suspect we could see the dollar sell off next week. The same people who bought the dollar today will likely be selling it next week. Especially if the non manufacturing ISM comes out weak again.