1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Commodity Markets Surge on Increased Demand for Risk

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 22, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
    Likes Received:
    Today’s sample of Futures Analysis from FuturesHound.com

    Commodity markets surged as traders sold the U.S. Dollar and used the proceeds to invest in higher risk assets. Commodity and equity futures were up across the board as selling pressure hit the Dollar from the opening today. Today’s rallies came as a surprise as many traders had anticipated a quiet trading session ahead of tomorrow’s FOMC meeting.

    The U.S. Dollar plunged to a new low for the year as global investors aggressively bought higher risk assets such as equities and commodities. The fact that this buying took place one day ahead of the Fed’s FOMC meeting indicates that traders have confidence that the Fed is going to leave interest rates at historically low levels for some time.

    Equity markets regained some of their losses from the past few days to post modest gains today. Heavy buying from Asia and Europe overnight helped provide the early support. The acceleration to the upside occurred as the Dollar weakened throughout the New York trading session. Financial stocks led most of the rally today.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

Share This Page