Another set of charts to look at. This time, there are 3 contracts being shown: The S&P 500 index, Crude Oil July 2010 futures, and AUD/JPY.
Notice that the commodities (Oil) moved with the AUD/JPY. This makes sense, because of AUD being a commodity currency. Also, notice how the S&P 500 moves with them as well! This is a proxy for risk, so it makes sense as well. Perhaps the stock markets are figuring commodity demand is going to rise because of the world wide "recovery." So as oil goes up - they are buying stocks.....
Just a thought, you should always look around, even if you are not trading all of them.
Notice that the commodities (Oil) moved with the AUD/JPY. This makes sense, because of AUD being a commodity currency. Also, notice how the S&P 500 moves with them as well! This is a proxy for risk, so it makes sense as well. Perhaps the stock markets are figuring commodity demand is going to rise because of the world wide "recovery." So as oil goes up - they are buying stocks.....
Just a thought, you should always look around, even if you are not trading all of them.