The marketplace might be a bit quiet over the next couple of sessions, but we do have the Final GDP numbers coming out of America during the day, so this could move the US stock markets in general. This of course will have an effect on the US dollar as well more than likely, have the Federal Reserve will have to take notice of how the US economy is continuing forward. After all, we’ve recently had our first interest-rate hike, so that of course has the Fed thinking about whether or not they can continue the rate hike cycle.
The US dollar looks set to take a little bit of a break during the session, but quite frankly we believe that the US dollar will continue to strengthen overall. If the GDP numbers show strength, that should be good for the US dollar overall, especially against commodity currencies such as the Canadian dollar, the Australian dollar, and of course the New Zealand dollar.
Commodities in general should continue to be soft, especially precious metals and energies. Quite frankly, we believe that the precious metals will continue to consolidate overall, and they are reaching the top of that previous consolidation. We also believe that the energy markets will continue to offer put buying opportunities in general every time they rally. After all, there just simply isn’t enough demand out there to support the markets.
Overall, we prefer US stocks over European stocks, but recognize that in general stock markets could find a bit of support fairly soon. At the moment though, we do have end of the year selling and that of course is affecting the way the markets behave.
