Looking at the upcoming session on Tuesday, there’s very little to move the markets as far as economic announcements are concerned. Because of this we believe that most of the trading will be of a technical nature. Ultimately, we can only trade the markets in reaction to the overriding themes.
As it appears right now, the US dollar will continue to strengthen. After all, we did initially tried to sell off during the session on Monday, only to turn things back around. It seems to be especially true around the world right now, as for example the Euro has started to fall apart again. With that, precious metals also are doing the same thing, so therefore we believe that this is going to be across the board US dollar strength that we can anticipate seeing.
In general, most commodities can be sold, as they are priced in US dollars. Ultimately, the market will continue to prefer the US dollar based upon the stronger than anticipated jobs number from last week. On top of that, there is quite a bit of concern about the global markets, and with that money will continue to flood into the United States. Also, you have to keep in mind that the Federal Reserve is likely to raise interest rates quicker than anybody else, so that should continue to put a bit of support under the US dollar for the foreseeable future.
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