Dollar Dominates Global Markets

Dollar Index
Monitoring the dollar index is straightforward these days; the more times that Greece appears in the financial press, the dollar index sees more buying pressure. Much of the gains of the Usd over the last five months of trade came because of the problems that Greece is facing, rather than real Usd strength. Going forward, favor Long-Usd plays.

S&P Futures
S/P futures reached a new yearly high in overnight trading, but the index had to retreat as Usd strength hit the market. The Thursday cash session houses U.S. reports that will have a major influence on the trading direction of the equity market. On the daily chart, the S/P futures trend is Long, while the momentum read is in the Overbought area. Traders will favor the Long side of the equity and risk market. 12-month 96% correlation to Aud and Cad.

Crude Oil
Crude oil started the day prepared to break above the $87 area, but the renewed episode of Usd strength did not allow the commodity to hold the move. Ahead, the direction of trading depends on the global business cycle and on the value of the Usd. Current forecasts are that the global economy will move at a stand-still pace, while the Usd will strengthen in time; neither one of these two assumption support an uptrend in the energy market.

Gold Bullion
Similar to the other commodities, Gold suffered from the moves seen in the currency market during overnight trade. So far, the precious metal has lost $5, but the daily momentum read remains Long, while the trend is turning Long as well. 12-month 85% correlation to dollar index. 12-month 85% correlation to dollar index.

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