We have to predict a major agricultural and financial juncture just ahead.
In all markets, there are inside market forces and outside market forces. What outside forces are affecting physical commodity prices?
With the twin peak investments of US Treasuries and US equities seeing severe technical damage and the latest US scheduled data flow leaving more growth questions than evidence of forward progression, it is not surprising to see the Dollar trading lower.
The Dollar continues to claw out minor gains overnight but today’s initial scheduled data flows aren’t expected to provide the Dollar with a distinct lift. In fact, the ISM Non-Manufacturing reading is expected to downtick and that could temper the Dollar’s four day rally effort.
We have a lot to discuss this morning because this Pre-Dawn will cover the balance of the week and most likely Monday. So let’s get right to it…
The inability to elect a Greek President on the second vote and ongoing gains in global equities would seem to leave the Dollar in vogue and poised to surge above the 90.00 level.
Without a positive industrial production result, the Dollar could see the beginning of a more significant corrective slide.
Global economic activity remains disappointing, but medicine in the form of another wave of central bank easing, cheaper energy prices and currency exchange windfalls for the weakest areas of the developed world are in place.
Critical pivot point support in the Dollar is seen today at the overnight low of 88.13 and with a rather active flow of scheduled data this morning, traders should brace for the most significant volatility of the week directly ahead.
From the overnight session, the aussie is up 15, the pound is up 24, the euro is up 74, the yen is down 4, the swiss is up 62, the dollar is down 39.