* The dollar fell versus its rivals on Wednesday as better-than-estimated corporate earnings and economic data lifted investor risk appetite. The Dow Jones 30 index closed above 10,000 for the first time in over a year and the S&P 500 index rose 18.83 points to 1092.02. The dollar index dropped to the lowest level since August 2008, breaking the 76-area support. Some Federal Reserve policy makers said expanding the Fed’s $1.25 trillion mortgage-backed securities purchase program may help revive the economy, according to minutes of the Federal Open Market Committee’s September 22-23 meeting released today. Better-than-expected Chinese trade data, relatively upbeat US retail sales, rising eurozone industrial production, and improving UK labor-market conditions signaled the global economy is on the mend. The Bank of Japan maintained its key interest rate at 0.10%, as forecast. The BOJ said “Japan's economy has started to pick up” but warned that “the outlook is attended by a significant level of uncertainty stemming mainly from developments in overseas economies and global financial markets.”
* The USD/CAD fell for the eight days out of nine as crude oil, Canada’s largest export, rose above $75. The pair’s direction continues to be inversely related with equity and commodity prices. The Bank of Canada may worry about its inflation target and Canada’s economic recovery as the loonie appreciates; thus, making a BOC intervention to support the pair possible but not likely. The USD/CAD is oversold. There are strong supports in the 1.02 and 1.00 areas and strong resistances in the 1.05-1.06.
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