Dollar Strengthening as Equity and Commodity Markets Weaken
The stronger Dollar is putting pressure this morning on both equity and commodity markets as traders dump risky assets for the safe-haven Dollar. Equity markets were down in Asia and Europe. This weaker trend is expected to spillover to the U.S. stock markets. The December E-mini S&P 500 is in a position to post a weekly closing price reversal which could be a strong sign that sentiment will be shifting to the downside for the next 2 to 3 weeks.
Treasury futures are trading higher this morning as money is being moved out of the risky stock market into the safety and security of Treasury Bonds and Notes. This action is helping to drive down yields. The current weak state of the economy is giving traders the confidence to stay long government debt since interest rates should remain low for a prolonged period of time.
Lower global equity markets are helping to push the U.S. Dollar higher as investors shun risky assets for a second consecutive day. Traders began getting nervous earlier in the week after Fed Chairman Bernanke mentioned the level of the Dollar in a speech. This was followed by supportive comments from European Central Bank President Trichet who used a speaking opportunity to announce his agreement with Bernanke and to try to talk up the Dollar.
- FINZ Futures EP.6: What are Tick Charts and Why Use Them?
- Ashraf Laidi Interview Outtake - FOMC & Obama's State of the Union
- AfraidToTrade.com's Corey Rosenbloom Webcast: Inter-Market Relationships - Stocks, Bonds, Rates, Currency, Commodities
- Get Schooled in Technical Analysis Basics EP.1: Support & Resistance
- Chart Attack Ep. 2: Long Father's Day, WFC, RIG, AA, VNO, & Tony Soprano
