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Forex Today: Commodities, Risk Assets Advance

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Overall risk sentiment improves in the market as banking shares in the US enjoy a recovery, raising hopes that the banking crisis is easing.

   

  1. Global stock markets are broadly higher after the US banking sector finally staged a meaningful recovery yesterday, raising hopes that the banking crisis is ending. Most global equity indices have closed higher over the past day.
  2. In the Forex market, the US Dollar is making its second day of declines. Over the short term, the Australian Dollar looks like the strongest major currency, while the Swiss Franc is the weakest.
  3. Several commodities are performing strongly, notably WTI Crude Oil, while Cocoa has reached a multi-month high price.
  4. FOMC member Jefferson made a hawkish statement warning of inflation expectations setting in and stressing the need to get inflation down to 2% as quickly as possible.
  5. There will be a release of Australian CPI (inflation) data later which is expected to show a decline in the annualized rate from 7.4% to 7.2%,
  6. There will be a release of US CB Consumer Confidence data later.
  7. The Governor of the Bank of England will be testifying before the British Parliament about the recent collapse of two US banks. There is a small chance this could cause some volatility in the British Pound.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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