Quantcast
 
New book by Larry Connors Click here Improve your trading - See how



Dollar Holds Euro, Bonds Creep Higher

By John Patrick Lee | TradingMarkets.com
Email
Print
Archives
Feedback
Email Article Link
Close X
Recipients email address
Your name
Your email
Add a note (optional)




Bonds rose moderately today, giving up some gains from early in the day to close only slightly higher. Retail sales plunged unexpectedly the fastest in 2 years last month, prompting traders to buy bonds ahead of speculated economic weakness in the U.S. The subprime mortgage fallout has been weighing heavily on bond traders, pushing prices higher on fears of U.S. slowing growth. Bonds typically fall on positive news and rise on weakness, so today could be seen as a bad sign for the U.S. economy, in relation to bond prices.

The yen bounced moderately against the dollar and the euro today, and the euro also stalled against the dollar. The big news this morning was a letter from Iran sent to Japanese refineries, requesting that Japan begin using yen to buy oil from the Middle Eastern company. Iran is worried about more potential sanctions to come from the West, which could theoretically freeze Iran's dollar assets. The dollar bounced against the Canadian dollar despite a severely weak retail sales report. The British pound rose over the dollar.

Crude oil futures rose nearly 2% today, after a pipeline shutdown near the North Sea prompted supply worries. Summer is usually a period of high oil demand and rising prices, so any potential disruptions could have a major effect on prices. Natural gas futures rose 2.5% on fears that a Midwest heat wave could send prices soaring.

Gold futures fell fractionally today, as the euro rally stalled against the dollar. Gold normally trades inversely to the dollar and with oil; despite oil's gains, gold fell on dollar strength. Gold has also been trading inversely with rising interest rates, as higher rates make the safety metal a less attractive investment.

Grains rose today. Soybeans gained 0.9% and corn rose just over 1%.

The Dow closed above the 13,900 mark for the first time and the S&P 500 reached the highest intraday level since 2000. For the complete stock market recap, click here.

Economic News
Retail sales fell 0.9% in June.

John Lee
Associate Editor
johnl@tradingmarkets.com

For more on today's stock market action, check out today's Stock Market Recap.


>> See more articles by John Patrick Lee
Stocks RSS Bookmark and Share
Related Articles
More Related Articles >>
PREMIER SPONSORED LINKS
TRADE CENTER
 
RELATED SITES
Nothing but forex
Please call 1-213-955-5858 ext. 1

About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

© Copyright 2009 The Connors Group, Inc.


All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

© 2009 The Connors Group, Inc.