FXS: As The Dollar Declines, Commodities Continue Upward Climb
As the U.S. Dollar hovered around 15 month lows on Tuesday, there is little doubt that with low U.S. interest rates extending into the new year, the greenback will likely stay at its current level for the time being. The dollar was not the only currency to take losses in trading today. After Fitch Ratings rated Britain as the most at risk of the four major currencies, the sterling sharply declined against the dollar. Traders would be wise to bet on high risk currencies such as the Aussie, as the dollar does not appear to be rebounding anytime soon.
In commodities trading, after reaching record highs at $1110.00, gold declined slightly in trading on Tuesday. Currently, it is in an upward trend and traders should keep an eye on whether it can break new records. Taking its cue from the weak dollar, crude was trading at near the $80.00 mark on Tuesday, and will more then likely continue its upward trend.