USD gains, as Commodities Sink

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USD gains, as Commodities Sink
USD gains, as Commodities Sink

USD gains, as Commodities Sink

The Federal Reserve has been playing the game pretty wisely where they are not only favoring their own currency – USD – to favor their economy but alongside keeping their stock markets in favor to the bulls that still have the confidence by the investors.

Speculators thinking about this as a bubble may not be thinking the same as of now because the element of sustainability is definitely there in the market where USD is still considered as a safe haven. The Federal Reserve chairman Janet Yellen hinted that the stimulus cuts would continue where the need for that much stimulus is not that anymore, since the economy has improved considerably.

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Housing Sector Booms

The data for the New Home Sales of the United States was released yesterday in the US session where the number of new home sales in the past month exceeded the previously recorded figure and the expected figure by a great margin. Nearly 468,000 home sales were recorded in the past month that shows that the housing sector has recovered massively and the purchasing power by the consumers is at its best. The real estate investment is still considered to be a safe idea for the investors where they are speculating that the markets would boom in near future, and the prices would go up.

Commodities Drop

The commodities faced some tough time yesterday where they lost in the US session, where copper plunged to its lowest price in more than two month’s time, considering that the growth rate is dropping in China which is the largest consumer of copper and gold. Gold slipped down to 1321 immediately after the release of new home sales data, where it was trading at 1341 by that time.

Qantas Shares Land

Qantas Airline’s stocks fell by nearly 0.5% as the biggest airline company of Australia stated that it would be cutting around 5000 jobs and postpone the purchase of its new aircrafts as it has faced the loss of $225 million.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com