FOREX DAILY OUTLOOK - October 28, 2009 part 1

As we expected, the dollar stayed on track and made further gains, especially after consumer confidence was released worse than expected. The euro found support at 1.4780, the cable managed to gain a bit of ground to close at 1.6370 after bouncing off 1.6244, Yen rallied to fall below 92, and the Suisse continued to test the 1.0225 level, closing just under. We are still bullish on more dollar gains in the very short term, but we expect a bounce and more dollar losses to come. Everything right now depends on risk appetite. If equity markets continue to decline, the dollar will gain ground; if equity markets stay at these levels or go higher, the dollar will continue to lose ground. Even Fed comments about a strong dollar policy arent helping the buck.

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