Greater demand for higher yielding assets is punishing the U.S. Dollar this morning. All major currencies are expected to open higher versus the Dollar. Renewed interest in higher risk assets is leading to speculative Dollar selling fueled by a G20 pledge to continue stimulus spending. Equity indices are surging boosted by low inflation and earnings momentum.
Oversold Conditions Help Drive British Pound Higher
Stronger Dollar Leads to Drop in Demand for Commodities
Weak U.S. Economic Report Drives Up Demand for Treasuries
A drop in U.S. Retail Sales in July helped boost demand for U.S. debt instruments on Thursday. This report showed that spending is still weak as consumers worry about their homes and their jobs. The numbers indicate that the cash for clunkers program may have had something to do with the drop in retail sales. Consumers may have used money earmarked for other items for a new automobile.
Treasury Futures Rally on Increased Auction Demand
Today’s Treasury auction saw great demand which helped drive up the price of September Treasury Bonds. Investors were encouraged to buy the 3-year Notes at the auction because of the attractive yield and the weakness in the equity markets. Overseas demand was particularly stronger compared to the last three months.
U.S. Non-Farm Payroll Report Shows Smaller Loss than Consensus
Bigger Fish to Fry… Finding High Probability Trading Opportunities Within Classic Technical Patterns.
Is Now the Time to Invest in Solar while Stock Prices are Cheap?
Solar stocks have had an interesting history the last two years. Take First Solar Inc. (FSLR) for instance. From January 2007 to April 2008, the stock boomed more than 900% as demand for renewable energy prices surged along with rising oil prices. However, this growth did come to an end as with most rapid-growth stories and the stock fell from over $300 a share to just $140.