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Market Wire Update:
S&P futures are testing the 1015 area, where they topped out in the last few days of trading. However, unlike in the prior moves, these test of resistance follow very poor retails sales and news reports about foreclosures reaching record highs. This said, the price current valuation does not look easily justified, and the equity market might be force to retrace some parts of the current rally. "The fickleness of the traded market has shown itself once more; what a difference a day, and a headline, makes", TheLFB Trade Tean said.
In the currency market, the major pairs are just breaking below the range seen during the second part of the day on Thursday, and throughout the Asian sessions. The forex market is having a strong reaction to the fundamental drivers right now, and are what traders are using to gauge fair value at the moment. Later in the session the market gets to see the CPI reads coming from the Euro-area, and the U.S., which will confirm the magnitude of the downtrend at a macroeconomic level. If the equity and the commodity markets struggle to break higher through heavy resistance, the dollar index may have an easy day ahead, and will finish the week not far from where it started.