Futures Market Technical and Fundamental Recap
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Today's Futures Analysis summary.
Weaker than expected U.S. economic data send foreign currencies, commodities and stock indices sharply lower on Wednesday as traders got a hard reminder about how risky it is to bet against the U.S. Dollar.
Once again fear and uncertainty have reared their collective ugly heads while triggering another round of profit-taking and flight-to-quality trading. So while it looked like the Dollar was doomed as it slowly disintegrated the past three months, today’s action reminds us that investors should trade on real numbers and not sentiment numbers. The real numbers tell the truth. The sentiment numbers are based on feelings
The sell-off may have been a little overdone as other matters complicated the trade. For example, Thursday is a big day for central bank meetings for the U.K., the Euro Zone, and Canada. Friday is the U.S. Non-Farm Payroll Report. This may be considered by some to be a lagging indicator, but it will most definitely move the markets immediately this time.
News that Asian central banks were going to continue to buy U.S. Treasuries was well received by Dollar bulls today. This news gave the Dollar a boost as it forced shorts to cover. Many bears have been shorting the Dollar in anticipation of a debt rating downgrade for the U.S.
Friday’s close will be especially important this week as several markets are already indicating the possibility of asset class shifts
By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis.
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