The Trader Advantage ProgramTheLFB-Forex.com A Forex Trader Portal
Forex Connect: Stocks Need The Dollar To Break
U.S. equity markets are trading higher at the mid-session after a morning of uncertainty, says Brewer Futures Group. Catch Brewer Futures, and TheLFB trade team on ForexTV Live.
Overnight traders were shedding risk in favor of lower yielding assets, but a break in the Dollar has refuel demand for more risk. The daily chart indicates the March E-mini S&P 500 is on course to test 1156.00 by March 12th.
June Treasury Bonds have given back all of their earlier gains as investors are now looking for better yields rather than safety.
News that China may limit future gold purchases, pressured April Gold early in the session, but the weakening Dollar has triggered a massive short-covering rally.
June Crude Oil is getting close to even after overnight weakness triggered a break below a key uptrending Gann angle. The strong recovery has this market in a position to test the high for the week at 83.22.
Firmer U.S. equity markets are triggering renewed demand for risk at the mid-session. This is helping to weaken the Dollar while fueling a rally in the higher yielding Australian Dollar and New Zealand Dollar.
The March Euro is also gaining strength on renewed talk of a possible bailout of Greece by the European Union. Without any major economic reports to guide it, the Euro remains sensitive to any news regarding Greece.
Short-covering triggered by the weakening Dollar is helping to boost the March British Pound off its lows. Although this market is up off the low, the fundamentals continue to remain weak.
The pick-up in demand for higher yielding assets is helping to weaken the March Japanese Yen. The firming Euro is helping the March Swiss Franc recover most of its early morning loss.
Demand of higher yielding assets helped turnaround the March Australian Dollar and March New Zealand Dollar after earlier weakness. Falling gold and crude oil prices weakened the March Canadian Dollar, but the turnaround in both of these markets has helped the Canadian Dollar recover most of its earlier loss. .
Traders should watch for a strong surge in U.S. equity markets to trigger a break in the U.S. Dollar.
Trade Signals and Plans Straight Off The Meta 4 Charts- Get TheLFB Trader Advantage
Provided by TheLFB Trade Team, © 2007-2010 LFB Services, LLC. All rights reserved.