Commodities Bolster Asian Stocks, President Obama Set To Announce GM’s Chapter 11 Filing

Posted by admin
June 2, 2009

Commodities Bolster Asian Stocks, President Obama Set To Announce GM’s Chapter 11 FilingMarket Brief

The Usd was weaker in Asian session. EurUsd jumped sharply to 1.4197 from 1.4081 while UsdJpy traded between 95.50 and 94.70. The persistent rise in commodity prices in past months has seen commodity stocks in Asia rise sharply this morning. As an economic recovery becomes a reality - hedging against inflation through Gold, Silver and Crude has seen these three assets trade past many crucial levels as of late - Gold up 1.8% on Friday alone. However, crude and Silver moves have surpassed all expectations - Silver rising 27% in may (it’s largest monthly gain in 22 years) while crude jumped a record 30% (a move not seen since 1999). This played to the tune of the Sterling, Yen and Aussie dollar - all rising at an exceptional pace since market open last night.

The dollar weakened early on in the session but fought back through the night as the GM bankruptcy filing draws nearer. President Obama is set to officially announce the filing - testament to the pervasive nature and importance of this event. We expect the USD bearish sentiment / selling to continue this week. Data in focus today will be the US manufacturing ISM data which is expected to improve to 42.0 which would be supportive of risky assets / USD negative.

ACM FOREX

Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Forex Area

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

No comments yet.

Sorry, the comment form is closed at this time.