Daily Forex Tips
As this trading week is making its first steps, few things are sure. One, it seems that no matter what happens, the Dollar drops. Many explanations are being given to this phenomenon, but the bottom line is that traders who went against the Dollar are making profits for over 6 months now.
Another sure thing is that for the past few weeks, the freefall of the Dollar is boosting commodities to new highs. Many analysts have considered $60 a barrel to be the correct price for oil, and now many see it returning to around $100. Gold has finally finished the stage on which it reached record highs on a daily basis, but still after correcting its current price is still a remarkable $1,050 an ounce.
Another potential trend in the making is the bearish Yen. Whilst many countries are expected to hike rates in the near future, the Bank of Japan doesn’t even consider it. If this will indeed be the case and Japan will be the last country to hike rates, the Yen is very likely to depreciate strongly as a result.
Today’s leading news events:
12:30 GMT: CAD – Canadian Foreign Securities Purchases
This report measures the total value of domestic stocks, bonds and money-market assets which were purchased by foreigners during August. Analysts expect a 2.97B result. If the end result will be similar it is likely to support the CAD.
15:00 GMT: USD – Fed Chairman Bernanke Speaks
The Federal Reserve Chairman Ben Bernanke is due to speak about global financial crisis. A hawkish speech that will suggest that the crisis is behind us could have a dramatic impact on the market.
