Excerpt from: Financial Spread Betting Strategies
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| November 15, 2007 | | Commodity prices offer insight into other markets | When placing spread bets on a variety of markets, it can be helpful to look at commodity prices. Some currencies, like the Australian dollar and the Canadian dollar, rely on commodities to underpin their movements. Additionally, commodity prices can help you when developing financial spread betting strategy for stocks. Commodities affect share prices of companies that use them. Bloomberg describes the effects of commodity prices on the Canadian dollar:
``The option risk-reversals show that market sentiment has
moved against further Canadian dollar appreciation and toward
its depreciation,'' said David Powell, a currency strategist at
IDEAglobal Inc. in New York. ``We do see the Canadian dollar as
overvalued'' based on ``interest-rate differentials and
commodity prices.'' | | |
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