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Euro FX future traded at CME is one of the most traded future in the world and surely the most traded currency future available. It is based on the Euro/Dollar exchange rate and it is used by the investment community as a way to manage the risk associated with rate fluctuation and/or as a way to speculate on changes in currency rates.Making an accurate forecast on where the market will move in the next days is not an easy task. Last week we have assisted to a low volume trading, with undefined movements and uncertainty. We can address this moment as "the quiet after the storm", where investors wait for a more defined sign before making the next move.
Has the storm really gone away? US seems more solid, especially financials, FED is working hard to establish a tighter control over them and lighter winds are blowing on Wall Street. The S&P500 has power to move up and limit its downside movement. Commodities are weaker today while equity indexes have shown an impressive strength to recover from their lows. Is it possible that money flows have been redirected back from commodities to equity? Companies are publishing their results and this could be a good opportunity to buy undervalued stocks.
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