Tuesday, October 26, 2010
Inverse Relationship !!
We have seen direct relationship between the commodities, stocks and currencies. We are also aware of the inverse relationship between the dollar and the commodity market especially the oil. When the dollar value increases, the crude oil price decreases and vice-versa.
But the latest in news, happening in news is all about equities. Equities and the dollar have formed an inverse relationship, so as the dollar drops, equities often advance. Growing speculations that the Fed would extend monetary easing at its next meeting in November has pressured the dollar while boosting equities.
I think dollar will loose ground in the near future and the US stocks are the best options to invest in and Euro/Sterling(Pound) will gain momentum.
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1 comment:
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