SubscribeDaily Futures Commentary August 13, 2009
Thursday, August 13, 2009
An unexpected improvement in Euro Zone economies during the second quarter is helping to firm up the currency markets and trigger more demand for risky assets this morning.
Overnight it was reported that surprise growth in the German and French economies helped improve the Euro Zone economy. Economists had predicted a decline in the economy of 0.50% during the second quarter, but instead the region fell only 0.1%.
Appetite for risk increased on the surprise news as European stocks and the Euro rose sharply. Gains spilled over to other global equity and foreign currency markets as this news marked the first sign that the recession in the Euro Zone may be over.
The same bullishness which struck the Dollar on August 7th when it was announced that U.S. unemployment data came out better than expected could help drive foreign currency, equity and commodity prices higher all day.
The September Euro is soaring on the news of the improvement in the Euro Zone economy. Since there is now more solid evidence that the Euro Zone economy may be pulling out of the recession, traders are buying the …
Read More …
Loading ...
