Excerpt from: GFT Analysts in the News
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| June 15, 2009 | | Correction to the commodities market coming today | It appears that there is correction in commodities market today. After seeing some rally action, both gold and oil are down in commodities trading. Part of the reason likely has something to do with the fact that the U.S. dollar is rising again in forex trading on concerns about the financial markets. Indeed, investors are wondering whether too much optimism has been seen recently.
Indeed, with commodities lower, the U.S. dollar is rising across the board, sending the high beta currencies, which do well with risk, lower in forex trading. It looks as though the picture is not as good as some thought, and that talk of "economic green shoots" might be a little premature.
This correction in the commodities market is likely to last a little while, and last until more substantial evidence of the end to the recession is produced.
| Topic Tags: commodities, commodities market, currencies high beta currencies, euro forex trading, forex trading, green shoots, U.S. dollar | |
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