CommStock Israel Investor
Insights Newsletter
Monday, April 20th, 2009
*****Our Altshuler Shaham (F6)
CommStock Commodity leveraged Fund
is up 14.76 % since January 2009****
1) Dollar mixed against rivals
US currency
and yen fall as improved economic data bolsters risk appetite.
Last Updated: May 1, 2009: 6:58 PM ET
NEW YORK (Reuters) -- The U.S. dollar and yen fell Friday
as improving risk appetite sparked by better-than-expected U.S.
economic data pared demand for both currencies as a refuge against
a global slowdown.
The dollar fell for a fourth straight
session versus the euro, while the yen dropped to a two-week low
against both the euro and dollar, with volumes thin given the May
Day holiday in Europe. Higher-yielding currencies such as the Australian
and New Zealand dollars were also some of the biggest movers on
the day, moving in tandem with higher U.S. stocks.
Reports Friday reinforced the view
that the worst of the recession may have passed, making investors
more comfortable with risk-taking. Data showed U.S. consumers felt
more upbeat about the economy in April, while a closely watched
gauge of manufacturing suggested the sector was gradually emerging
out recession.
The numbers were consistent with the
Federal Reserve's less bleak outlook on the U.S. economy on Wednesday.
"Risk appetite is definitely coming
back and the data this morning was phenomenal," said Melvin Harris,
a market analyst at Advanced Currency Markets in New York.
"The reports are supportive factors
to truly build the case that while things are not completely better
yet, we are moving in a positive direction. Economic fundamentals
will become more important in the next couple of months."
In early afternoon trading, the euro
rose 0.3% against the dollar to $1.3258 and touched a two-week
high against the yen at ¥132.33. The euro last traded at 131.90,
up 1.2% from late on Thursday.
The ICE Futures' dollar index, a measure
of the greenback's value versus six major currencies, fell 0.3%
to 84.591 .
The dollar, however, gained 0.9% against
the yen to ¥99.46, having hit a two-week high around ¥99.58, according
to Reuters data.
The Australian dollar rose 0.7% against
the U.S. dollar to US$0.7304 . The New Zealand dollar also climbed
0.8% against the greenback to US$0.5693, while the Canadian dollar
was also firmer, with the U.S. dollar down 0.7% at C$1.1850.
Investors were also encouraged by data
overnight showing Chinese manufacturing gained further momentum
in April, as well as by Friday's better-than-expected UK manufacturing
survey.
"The antipodean currencies are amongst
the top performers bolstered in part by encouraging PMI data out
of China and in part by relatively high yields as market participants
place money in (those) currencies over the holiday period," said
Brown Brothers Harriman in a note to clients.
Optimism was further stoked in the
United States after St. Louis Fed President James Bullard said
Friday unemployment rates in the United States will likely crest
above 9%, but not reach levels set in the early 1980s.
2) Commentary by David Zwebner,
CEO of CommStock Trading
There will not be an update from Dave Zwebner this week.
Yitzhak Zwebner, Dave's father passed away on Friday.
He is sitting shiva.
"May G-d comfort him among all mourners of Zion and
Jerusalem"
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