FUTURES $US contract dives
Speculators long in the U.S. dollar futures contract took a bath yesterday. Contracts dived as the kiwi dollar rose strongly on the foreign exchange market. The peak at U553.50c was “through the roof,” in the words of Dr Brent Layton, of Marshall Futures.
The January dollar contract fell 476 points on Friday (closing prices), which will represent a broker’s call to long investors this morning for about $2386 per contract. (Those short, with selling positions benefited by the same amount.) Dr Layton said the kiwi was strong because of
weakness in the American dollar overseas, firmer interest rates in New Zealand, and because the kiwi opened yesterday above a technical barrier. The interest-rate futures (PCP) indices were down yesterday, mirroring firmer rates in the physical market. Trading volume was only moderate.
Wool contracts trading was very quiet, with, Dr Layton said, prices a “tad” (mite) easier. The exception was the May contract, down Bc, correcting a rise on Friday. Details of yesterday’s trading:
SUS CONTRACTS Mth Open H/L Last Vol Jan 1.9000 9100/8700 8825 49 Feb 1.9530 9530/8800 8941 67 Contracts traded: 116. COMMERCIAL BILLS Mth Open H/L Last Vol Feb 7587 7670/7580 7585 85 Mar 7567 7575/7552 7553 39 Apr 7675 7685/7675 7680 18 Jun 7855 7855/7855 7855 6 Contracts traded: 148. WOOL FUTURES Mth Open H/L Last Vol May 507 507/507 507 1 Dec 524 524/524 524 2 Jan 523 525/523 525 7 May 528 537/528 537 3 Contracts traded: 13.
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Press, 28 January 1986, Page 23
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247FUTURES $US contract dives Press, 28 January 1986, Page 23
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