Optimism back in the spotlight
Other solid economic data from the U.S. propelled the U.S. dollar (“USD”) to a high not seen in over 13 years against the other major currencies. U.S. Durable Goods Orders, an indicator watched closely by investors, posted growth of 4.8%, well above economists’ expectations of 1.5%. This resulted in a wave of optimism with regard to economic outlook, as shown by the recent gains of copper, often seen as a barometer of economic activity. The commodity has now surpassed its June 2015 high.
Not surprisingly, several indices were mentioned in the minutes of the last U.S. Federal Reserve meeting released yesterday afternoon, indicating that the institution is preparing to raise its key rate on December 14. According to several of its members, this is even considered a matter of credibility.
In this wave of USD gains, now is an opportune time to get in touch with your trader to discuss hedging strategies. Under current circumstances, market orders, hedging ratios and instruments would be interesting topics to cover.
Please note that U.S. stock markets are closed today for American Thanksgiving.
