How I analyze the Futures-Forex connection

This morning I held my weekly Monday morning webinar and the topic was the Forex Market Pulse. I dove a little deeper into what I look for between the dollar-Dow-crude and the affect on comm-dolls.

The video runs 18-minutes and explains what I look for in *normal* Forex Market Pulse correlation relationships as well as the way the $USDCAD and $AUDUSD are behaving because of the way the U.S. Dollar Index $DX_F Dow Jones Industrial Average $YM_F and crude oil $CL_F are trending.

A couple take-aways…the dollar, Dow, and crude oil markets are all trending higher on their daily charts with the dollar being the strongest. The question for traders then is which is dictating price action and therefore whether risk appetite really is the reason for the crude oil rally or whether it is the concerns in Iran. (That’s my vote.) The usual push-pull of the dollar and Dow are not in play and this makes gauging risk a little more complicated especially when you consider that crude oil is moving higher while the Continuous Commodity Index has been trending lower.

 

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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