Tag: Foreign exchange market
-
Picking a Bottom in Ags – Soybean oil
The story for months has been slack demand for Agriculture and increasing global production. Hence wheat currently trading under three year lows and corn trading under 2 year lows. Soybean oil has not escaped the black cloud that has been hanging over this sector either as seen on chart below clearly there has been a…
-
As weather abates will Natural Gas respond?
I’ve pointed this out several times in recent weeks but a sleeping giant was awoken 9 weeks ago. Natural gas has been on a tear from early November adding $1 move in the futures market from the first week of November until peaking in Mid-December just above $4.50. In the last two weeks February has…
-
Coffee Getting support from the Funds
As of this post coffee prices are higher by 4.44% with prices approaching previous resistance just below the 50 day MA (light blue line) that was challenged last week. Prices appear to be on the rise as money managers bought the dip this week when prices were trading near three weeks lows. I anticipate funds piling into coffee longs next week buying upwards of 10,000 contracts as they re-balance their positions at the…
-
The Loonie…A Broken Wing but it Can Still Fly
Today is December 5th and it looks like it may be the first positive session in the Canadian dollar in 10 sessions. Future traded to their lowest levels since May of 2010 yesterday but for now it appears .9350 will be the line in the sand in December futures. One cannot look at the Canadian…
-
Treasury Complex on its Heels
US Treasury futures are lower for the third day running amid fresh signs of economic expansion, putting the yield of the benchmark 10-yr Notes on the cusp of rising above 3% for the first time in 2 years. According to ADP today the US added 176,000 jobs in August. A key gauge of the US…
-
The Buck Appears to be Appreciating
I want to revisit the topic of the US dollar as I do feel an interim bottom was established in recent weeks and it appears we will see a rebound in the immediate future. I’ve been calling for this for several weeks but we only got confirmation this week with a close above the 20…
-
A Reversal in the Debt Complex
Since establishing an interim top this has been a one way trade since the beginning of May where the long end and short end of the curve has gotten hit. 30-yr bonds have depreciated 12%, 10-yr notes are lower by 7% and the March 16’ Eurodollar futures are lower by 1.3%. Lets quantify this…what are…
-
Continue to short Eurodollars
Energy: I was looking for a rally to get short Crude oil again after exiting client’s bearish trades and the market delivered higher by 2.64% today. I did not catch the high today so clients that resold October futures are down on the futures leg. I opted to buy 1:1 September $105 calls against their…