SubscribeDaily Futures Commentary March 31, 2009
Tuesday, March 31, 2009
Most futures markets are being driven higher by the weaker Dollar this morning. The first break in the Dollar overnight was triggered by traders who just felt that yesterday’s rally was an overblown reaction to potential bankruptcies at General Motors and Chrysler.
After having time to digest the situation, the general feeling early this morning is that bankruptcy is probably the best alternative. Some traders still believe that this situation is extremely detrimental to the economy and could have a negative ripple effect on almost every sector of the economy.
Support for the weaker Dollar this morning is also coming from news that the World Bank is going to create a trade fund. The newly proposed $50 billion program is designed to counter the decline in global trade.
This new plan is being seen as a positive this morning as trader appetite for risk is increasing. Confidence in holding risky, higher-yielding assets is increasing which should mean potential gains in foreign currencies, equities and most commodities while pressuring current safe-haven markets such as treasuries and the U.S. Dollar.
Equity markets are called higher as trader …
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