Markets remain cautious ahead of a week set to be full of economic events. Commodities were pressured overnight by the rising USD, up 1.3%, as the Japanese government stepped in to push down the yen’s value which had risen 40% against the USD since the start of 2008. This is the third time this year that the government has stopped the yen’s rise as a stronger yen makes it more difficult for exporters to remain competitive. The fact that it is the last trading day of the month also weighed on futures. End-of-month periods are historically a time when funds ‘clean up’ their portfolios ahead of potential buying which normally occurs at the beginning of a new month.
Michelle - Farms.com Risk Management
Michelle - Farms.com Risk Management
Comment