<p style=““ class=“text-align-justify“>The key trigger point was the softer-than-expected US CPI data yesterday and the dollar is now holding lower once again today. The euro and pound are decent gainers so far, but it is more of the case that both currencies are looking to solidify a further technical break higher against the dollar from yesterday.</p><p style=““ class=“text-align-justify“>Let’s dive straight into the charts.</p><p style=““ class=“text-align-justify“>In the case of EUR/USD, the pair managed to secure a daily break above the key trendline resistance (white line) from the downside swing from January last year. That key level is seen around 1.0598 and a weekly break above that as well as the 38.2 Fib retracement level at 1.0610 will be a massive win for buyers, allowing for scope to push towards 1.0800 next.</p><p style=““ class=“text-align-justify“>As for GBP/USD, the pair managed to breach resistance from its August highs at 1.2276-93 and is now running to fresh highs since June. A push towards 1.2500 looks to be on the cards but of course, the Fed will have the biggest say in terms of what comes next for the pair for the remainder of the week.</p><p style=““ class=“text-align-justify“>The 50.0 Fib retracement level of the downswing from last year is also at risk of being breached, seen at roughly 1.2306 (this may vary depending on what the low price is for the September drop). That will just add to more momentum for buyers in chasing a further move higher if the central bank stars line up via the Fed and BOE in the sessions ahead.</p><p style=““ class=“text-align-justify“>As much as the dollar is looking to count on the Fed for assistance later today, the technical predicament that it is in currently is already making it tough for dollar bulls to really turn things around. With such vulnerabilities being exposed, it won’t take much to trigger another round of selling in the greenback as we look towards the FOMC meeting.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>In a week where we will get so many major central bank decisions, you would think the bond market is the key spot to watch. But as we look towards the Fed later today, I would be remiss not to highlight how pivotal a part the stock market could end up playing once the dust settles over the coming sessions.</p><p style=““ class=“text-align-justify“>In particular, the S&P 500 chart is one that is presenting some technical considerations that are rather important to pay attention to:</p><p style=““ class=“text-align-justify“>The buoyant open and push higher after the US CPI data yesterday ultimately failed to clear the key trendline resistance (white line) from the downtrend this year and that also saw price fall back below its 200-day moving average (blue line).</p><p style=““ class=“text-align-justify“>The former is now arguably the most critical point in any Santa Claus rally for stocks before the turn of the year. Meanwhile, any downside push is currently limited by support from the 100-day moving average (red line). It will take a break below that for sellers to really regain any potential downside momentum from this point, upon a defense of the above resistance levels that is.</p><p style=““ class=“text-align-justify“>The technical considerations above will play into how risk sentiment will push forward in the aftermath of the events this week. As such, it may not necessarily be a straightforward reaction in which we equate any dollar selling and bond market rally to a potential risk rally. I fear that it might be a case of equities having to vindicate the moves elsewhere and if they don’t, that might spark some retracement in the dollar and bond market moves.</p><p style=““ class=“text-align-justify“>That is rather contrary to the phrase ‚the bond market is always right‘, something I usually would ascribe to any potential event that will impact broader markets as a whole.</p>

This article was written by Justin Low at www.forexlive.com.

<p>Trivia: Did you know that
future contracts are generally <a target=“_blank“ href=“https://kowela.com/signup“ target=“_blank“ rel=“follow“>traded on commodity exchanges</a>? Fact: The two largest commodity markets in the U.S. are
the New York Mercantile Exchange and Chicago Mercantile Exchange. </p><p>Raw materials like grain, bread, oil, and metals are commodity
products. The purchasing and selling of these primary resources are known as
commodities trading. This is because it occasionally involves the exchange of
tangible things. However, futures contracts, where you agree to purchase or
sell a commodity at a certain price at a particular date, are where it
typically occurs.</p><p>Your portfolio can become more diversified by adding
commodities, which act as an inflation hedge. However, commodities are very
erratic. Moreover, trading commodities is complicated because unpredictable
events like weather and political unrest can have a significant impact on
prices. Continue reading to discover several <a target=“_blank“ href=“https://kowela.com/“ target=“_blank“ rel=“follow“>strategies
to invest</a> in items and the fundamentals of
commodities trading.</p><p>UNDERSTANDING COMMODITY MARKET</p><p>You probably need to give the location of their cultivation or
mill more thought when you purchase a bag of wheat flour or an ear of corn from
a grocery store. This is so because corn and flour are both products. Commuting
and selling these replaceable resources in large quantities is known as
commodities trading. In addition, these basic materials frequently serve as the
foundation for produced goods.</p><p>The price movement of a commodity is the subject of bets by
traders. You buy futures or go long if you believe a commodity’s price will
increase. You sell futures or go short if you anticipate a price decline.</p><p>TYPES OF COMMODITIES</p><p>Commodities are divided into two groups by investors: hard and
soft. Through mining or drilling, hard commodities was discovered. Grown or
cultivated soft goods include cattle. The four primary sorts of commodities are
as follows:</p><p>Products from agriculture: delicate items.</p><p> -They include agricultural products like lumber, cotton,
corn, wheat, soybeans, and coffee.</p><p>Meat and livestock are soft goods also. They consist of milk,
meat, pork belly, and live cattle.</p><p>Hard goods: energy items. They consist of coal, unleaded
gasoline, natural gas, propane, crude oil, and unleaded fuels.</p><p>Metals: durable goods. They consist of industrial metals like
copper, aluminum, and palladium and noble metals like silver and gold.</p><p>Let me give you an example situation of commodity trading.</p><p>Consider being a food processing business that requires corn to
make cornmeal for food stores. If the crop is smaller, you want to avoid taking
the chance of higher prices. Consequently, you spend $4 on that futures
contract for 5,000 bushels of maize. If prices decline, you lose money because
you overpaid. However, even if they soar, you’re still only paying $4 per
bushel.</p><p>OVERVIEW</p><p>In summary, commodities are a well-liked stock market hedge. For
instance, during a bad market, many investors turn to gold. Likewise, a common
inflation hedge is commodities. Commodity prices frequently rise in response to
high inflation; when inflation is reduced, equities and bonds perform better.
Buying and selling the actual commodity is one way to trade it, but futures
contracts are far more popular. </p>

This article was written by ForexLive at www.forexlive.com.