During the session on Tuesday, we have CPI and PPI numbers coming out of China, which of course can have a great influence on global appetite and risk assets. Because of this, the market could very well be volatile late in the session, but earlier we have estimated GDP coming out of the United Kingdom, as well as Manufacturing Production numbers. With this, we could have a bit of volatility in the British pound, as well as the FTSE itself. Both of those look rather soft though, so we most certainly prefer downward pressure.
The US dollar looks like it’s ready to continue going higher, so we are very bullish of the greenback itself. We believe that it will gain against most currencies, and with that it is likely that the US dollar will reverse a lot of the losses that we have seen recently.
We believe the commodities will continue to soften over the longer term, and therefore we are not presently looking to buy calls against oil or precious metals markets. In fact, we believe that the bearish traders out there will continue to do fairly well. There is no currency that we like more than the US dollar at the moment, and we recognize that it should continue to be the way going forward, probably for the rest of the year.
Leave A Comment