Wall Street is falling strongly,pushing particularly commodity currencies to the upside; gold is also falling giving further support to greenback. Let’s see if majors manage to break above/under current lows/highs. That should accelerate dollar recovery. As usual, commodity currencies lead the way.

I am preparing the daily report for majors, and in the mid time, watching market. Of course gold keeps strong, but currencies are  paying a bit more attention to U.S. stocks futures today, strongly under pressure, despite the better than expected reading in U.S. trade balance. anyway, we know that is a little tricky all those Trade Balance reading, as trade gaps tend to narrow with less exports than what should be. In this case, gap narrowed more likely because of drop in crude imports. I see that this is holding stocks downside; in 40 minutes, U.S. will open and will likely define intraday dollar trend.

Stay tuned! 

U.S. stock open lower but are quickly regaining the upside, while gold fails to break under $ 1000/oz and keeps hovering around that level, halting dollar rally. Early to say, as we are barely 15 minutes from opening, let’s see how things develop: if S&P falls under 1055 and DJIA under 9720 dollar will likely regain the upside.

U.S. stocks open mixed, after the strong fall in initial jobless claims and a revision of GDP that matches earlier estimates. Struggling to turn positive, DJIA is 6 points down while S&P is negative 2,5 points. Stocks uncertainty is clearly reflected in majors, that, except for Japanese yen that quickly regain strength, remain trapped in small ranges.

S&P reached 979.85 basis points, while Dow Jones hit 9092. Fresh year high for both, no signs of reversal there, and dollar is up across the board against major rivales, except for canadian dollar, that quotes around 1.0860 on oil barrel approaching to $70.00. Japanese Yen broke above the 95.00 level, and slowly but firmly approaches to 95.50/60 zone, next important resistance level. I will continue following market, and reviewing market. You can join me later, around 22:30 GMT at the daily Wrap Up Webinar. Here is the link:

http://www.fxstreet.com/live/sessions/session.aspx?id=eb87f96b-168e-4c1c-b243-f237c2696d65

Consumer confidence slump in the U.S. falling under 50 level, and triggering a mayor risk aversion rally across the board that favours greenback as stocks turn negative in the U.S. Euro has 1.4040 ahead of 1.4000 zone, thus a bit over sold in smaller time frames.

Seems american session will be a stock/risk following session. Dollar and yen are slightly down as Dow Jones and S&P erased losses, turning higher as investors shrugged off worries about the morning’s weaker-than-expected jobless claims report and scooped up commodity and retail shares.

Dollar is falling across the board, with DJIA breaking under 8400 points and S&P testing 900 level. Oil is falling quick, breaking under 97.00 and dragging Cad to the downside. Euro rose to 1.3900 while Gbp break under 1.6400, with supports at 1.6360 and the 1.6310 zone. Still, downside dollar seems limited in the next hours, with key level for Euro around 1.3520 and 1.0820 zone for Swiss Franc.

Yesterday I was talking with CVJ, another blogger here at Fxstreet.com and a great analyst, about correlation of currencies, commodities, stocks, oil, etc, etc. Being both “old” in the market,  we were discussing about markets correlations along time. Correlations exist always, no doubts, but not always like we see these days, where global crisis, and fears rule the world. I believe that things are starting to change, and this tight correlation will become to ease, but not today :). Watch the Dow Jones that already opened higher after the encouraging jobs reports. Don’t place your hopes in euro, better look at Gbp or Jpy crosses, at least is what I will do!

Times of joy could last just one more hour, or extend the next couple of days: majors are up, stocks are up, could FOMC statement keep investors happy? we have to wait and see, i don’t dare to say that much. One thing we could say: Euro broke above the descendant trend line and remains comfortable above, maybe a bit exhausted maybe a small correction, nothing serious till now. Gbp test the 1.4810 and is also correcting a bit. in fact 3 European majors, including Swiss Franc seem to need a correction after past two days run. The extension of that corrections, will depend on stocks reaction to FOMC minutes. Japanese Yen has spent all day long around the 97.00 level against dollar, yet the rest of yen crosses are up with no signs of giving back ground. I will be here waiting for the FOMC and post first reactions.