Saturday, November 12, 2016

Not Just Forex: MARKET INSIGHT on Spot FX & US EQUITY Indices

Snap-shot on Metals!


The most impact from the USD movement affects commodities and metals as they are priced in USD. Widely used metals in industry sectos such as copper, lead, silver are quite sensitive in a decline and rise which can be correlated towards inflation similar to gold.

A clear example would be a considerable 1% decline in the USD value can tantamount to a 6 -7% increase in metals in normal trading conditions. And while the precious metal has always been set as an instrument to hedge against inflation, alternative strategies that can also serve to do well in either direction are relative to metals in commodity trading.

However, with the recent decline in precious metals, investors shifts to record highs on equities have been the driving force with both DOW & SP500 Indices rally from a wild ride post election day that traded in a huge decline. Click to continue

1 comment:

  1. The Oracle of Omaha is at it again! Just look at his open arm, when asked how optimistic is he about the US he said...100 percent. ... The market system works. It doesn't work for everybody. It works in aggregate."

    Link:
    http://finance.yahoo.com/news/buffett-says-u-stock-market-132140541.html

    ReplyDelete