Monday Daytime Market Recap

7/6/09

An interesting Monday after the three day weekend saw a strengthening and then weakening of the U.S. Dollar while the Dow Jones Industrial Average fell and then had an afternoon rally. During the Monday Overnight Hours to start the week in Sydney, Tokyo, and for part of the London session the U.S. Dollar strengthened a bit.

EUR/USD 1 Day Chart (DailyFX.com)

GBP/USD 1 Day Chart (DailyFX.com)

Obviously, the overnight hours were kind to the U.S. Dollar especially after the vote of confidence given by Chinese Government. The fall was likely steeper for the British Pound due to the fact that the Euro is the second most held reserve currency. What's interesting is that the British Pound rebounded quicker than the Euro, but also had a steeper fall. It is all likely due to the reaction in the United States to the employment situation. Both the Euro and the British Pound recovered against the U.S. Dollar by the time the New York session closed. As opposed to the overnight market, which was clearing trending in bearish fashion. The New York session provided a choppier upward swing of the two currencies against the U.S. Dollar.

Crude Oil 1 Day Chart (FT.com)

Oil fell on U.S. Dollar strength during the overnight session and then went straight back up on U.S. Dollar weakness due to fears about the U.S. recession. Oil dropped also due to the lack of demand and poor economy, but the currency story fills all the gaps that are needed. Issues in Nigeria are still being cited for likely jumps in the price coming this week, but this information will come out Wednesday according to The Wall Street Journal.

The Dow Jones Industrial Average had a "mixed" day. The Dow Jones Industrial Average went up 44.13 today and closed at 8324.87. However, these final figures do not tell the entire story of what happened.

DJIA 1 Day Chart (Yahoo! Finance)

The Dow Jones Industrial Average started off rather sluggish following the trend of the EUR/USD. Commodity based stocks fell today, which meant that ConocoPhillips, U.S. Steel, Freeport McMoRan, Alcoa, and Chevron were weighing down the Dow. Procter & Gamble and Kraft Foods (consumer staple companies) made jumps today to offset the commodity-based stocks that fell today.

That's your recap of the day. Tomorrow, I'll do some Technical Analysis with the Dow Jones Industrial Average, Gold, Copper, EUR/USD, USD/JPY, FTSE 100, and a wild-card stock of my choosing.