Tuesday, February 16, 2010
Confidence that the European Union, Greece situation is close to a resolution is helping to drive up demand for risky assets. This is helping to boost the U.S. stock indices ahead of
the opening. Traders are also becoming more confident in corporate earnings reports because of the recent improvements in the economy.
The improving economy and talk of higher interest rates by Fed Chairman Bernanke are helping to boost yields, thereby pressuring March Treasury Notes and March Treasury Bonds. Last
week’s auction boosted supply which helped weaken Treasuries further.
The pick-up in demand for risky assets is helping to underpin April Gold and April Crude Oil. Gold is trading as if speculators anticipate a drop in the Dollar.
Greater appetite for risk is helping to pressure the Dollar overnight. Reduced demand for safer assets is helping to drive up higher-yielding currencies. The weaker Dollar is
providing a boost for stocks and commodities.
Oversold conditions are helping to buoy the March Euro. Some traders feel that short traders may have overreacted to the …
