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Flight to Safety!
By Mike Conlon | September 1, 2009
It looks like the flight to safety trade is in full effect today, with the Japanese Yen crosses and US Dollar leading the way, especially against the commodity currencies (AUD, CAD, and NZD). The US equity markets are down today but hopes are that the “September Effect” is not upon the equities markets. The September Effect says that historically this month has been the worst month for US stocks.
Because of the correlations between the equities and currency markets, this could mean gains for the Japanese Yen and US Dollar. It looks like AUD/USD was not able to close above resistance at .845 and we could be in for a double-top reversal at that level.
So keep your eyes on the US stock market, because if the September Effect does take hold, then it could be a wild ride for the commodity currencies.
Tags: AUD, cad, commodity, currenc, currencies, currency, currency market, dollar, dow, Il, Japan, nzd, stock, stocks, trade, USD, Yen
Topics: What To Look At In The Market | 2 Comments »
September 2nd, 2009 at 8:12 pm
Yes, i will keep my eyes open and I will be on guard. No one knows what September will bring to every trader. Do you have any forecast?
September 17th, 2009 at 6:22 pm
Great post, really well written!