This week’s financial spread betting update is now available and can be read by clicking here.
In early trading this morning the dollar is once again gaining ground and regaining some of the losses seen during the latter part of last week. The long-term trend continues to favour the dollar almost across the board. Further dollar strength, should it come, will lead to a test of some key support/resistance areas against several of the major currencies and any breakouts may lead to some decent moves in favour of the dollar, which would pressure stocks and commodities. So far this morning, in spite of mild dollar strength, stocks and commodities are higher.
That said, we are in a seasonally bullish time of year and due to the normal inverse relationship between stocks and the dollar (as well as commodities) any stock rallies would pressure the dollar once more. As we write in this week’s update, the market to focus on is the S&P 500, with resistance around 1300 and support around 1200. A break of either of these levels will likely lead to a clearer picture.
Since last week’s update both the Greek and Italian PMs have both resigned and that goes to further emphasise the troubles within the Eurozone, which don’t like to be improving anytime soon.
This week’s financial spread betting update begins with:
The long-term trends still remain intact across the 4 primary sectors of stocks, commodities, forex and interest rate futures but many markets are in short term ranges and possibly on the verge of breakouts. Currently these trends are down for stocks and commodities, and up for the dollar and interest rate futures…….…continue reading by clicking here