Euro Currency (ECM9):
The EC opened higher at 1.3188 and rose to a morning Hi of 1.3227 as equity markets moved higher, weighing on the DX. As the equity markets retraced, the EC slid to our initial Support level of 1.3120, before bouncing into the close of 1.3165, down 18 tics. The s/t trend remains 'negative' w/ neutral momentum indicators. Traders are concerned about the lack of agreement from Central Banks within the EZ as we approach the next ECB rate meeting on May 7th. Many believe rates need to be cut below the 1.0% level, while others including ECB member Alex Weber want to keep rates no lower than 1.0%, which could slow further stimulus needed for recovery. Higher equity prices should favor a stronger open as safe-haven of the DX is reduced. A lower open may find Support at 1.3102 and 1.3038, while an open above 1.3183 should find Resistance at 1.3247 and 1.3328.
Dollar Index (DXM9):
The DX opened lower at 85.33 and slid to a morning Lo of 85.13 as equity markets rose on a better than expected decline in initial Jobless Claims of -53K. As equity markets retraced , the DX rose to a mid-day Hi of 87.76, before trailing lower into the day-session close of 85.52, up 16 tics. The late afternoon equity rally could pressure the safe-haven benefit of the DX, should foreign markets continue higher over-night. A higher open should find Resistance at 85.72 and 86.07, while an open below 85.28 may find Support at 84.93 and 84.50.