Wednesday July 15, 2009 - 13:20:50 GMT
Share This Story
Forex Hound - www.forexhound.com
Trader Appetite for Risk Buoys Equities and Metals
The September Euro is trading higher overnight driven by increased appetite for risk. Global equity markets are trading better which is leading investors to seek higher yields in more risky currencies like the Euro.
Demand for higher yielding assets has been putting pressure on the September Eurodollar. Since reaching a peak at 99.47 late last week, the Euro has been met with profit-takers who have decided to shift their funds out of one of the lowest yielding investment vehicles into the more risky equity markets.
Look for a higher opening in September Unleaded Gasoline. The weaker Dollar along with firmer equity markets are helping to boost the demand for higher risk assets. Yesterday the American Petroleum Institute reported that gasoline inventories had dropped 69,000 barrels last week
Increased demand from China is helping to boost September Copper overnight. The weaker Dollar and firm equity markets are also providing support as speculators bet that a recovery in the global economy will spark even more demand for this metal.
Better than expected earnings from Intel yesterday and Goldman Sachs earlier in the week are helping to fuel this current rally in the September E-mini Dow. Gains could be limited today, however, as this market has reached a key 50% retracement level at 8418.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."