This week’s financial spread betting update is now available and can be read by clicking here.
In early trading this morning, stocks have continued lower, resuming weakness that has been seen over the past couple of weeks. The indexes are now heading towards short-term support so it remains to be seen as to whether support holds, or whether the current uptrend is over for now.
The dollar is slightly higher this morning as short-term dollar strength continues and this is also the case with interest rate futures. Aside from that most other markets are showing weakness as recent selling continues.
How long dollar strength continues for remains to be seen as the long-term trend is still very much against the dollar. As we have written before, with so many people being short the dollar, a bounce higher is always possible as things reach the stage that everyone who wants to be short already is.
Obviously a rising dollar makes commodities more expensive as they are priced in US dollars, so further dollar strength may continue to negatively impact commodities, especially metals and energies.
Gold has fallen back below $1500 and is currently at $1489 as I write and may head further down to test support around $1460 as the stronger dollar continues to affect metals. Silver is also lower, as is Crude. The trend long term still remains up for this markets and further weakness will be required before that changes.
This week’s financial spread betting update begins with:
The past week has seen the dollar continue recent short-term strength against the long term trend. This has not helped commodities, many of which are lower. Stocks have also been unable to move higher and for the most part have moved slightly lower. For now the long term trends are as before, up for stocks and commodities and down for the dollar……continue reading by clicking here