During the day on Wednesday, we have Construction PMI coming out of the United Kingdom, the ADP Nonfarm Employment Change announcement, and an interest-rate decision coming out of Canada. We believe that there is more than enough to move the markets during the day because of these announcements. Also, let us not forget that the Crude Oil Inventories number comes out of the United States, and that can move crude oil itself.
We believe in the overall uptrend of the USD/CAD pair, and fully anticipate buying calls sometime this week. You have to keep in mind though, we could get a bit of a disruption during the session today, but we look at pullbacks as value as we continue to prefer the US dollar over almost all other currencies in the world right now. We believe that overall US dollar strength will continue to be the way going forward.
Precious metals tried to rally but they look like they are turning back around therefore we are buying puts in both gold and silver at this moment, as we believe commodities in general should continue to suffer with the strengthening US dollar.
We recognize that stock markets in general should continue to go higher, but we actually prefer European indices as the Euro continues to lose value over the longer term. We believe that they will outperform the US indices, although we are bullish of them as well.
