During the day on Monday, there is very little out there to move the markets as far as economic announcements are concerned, so we have to assume that the overall moves will continue. We have seen quite a bit of selling in the US dollar, especially against the Euro, and it looks after the Friday session we may see more of the same. However, be cognizant of the fact that the 1.10 level above could be rather resistive.

1 – We like stocks in general when it comes to America, but the European indices may struggle bit due to the strengthening Euro. Ultimately, we believe that the US economy will continue to go higher, and as a result stocks will as well. Precious metals seem to look healthy all of a sudden as well also, because of course the fact that the US dollar is shrinking. There is a lot of value to be found in both gold and silver at the moment if we can continue the momentum, and it’s hard to believe that the market will continue to focus on that.

2 – The Japanese yen will continue to suffer, as economic conditions look to be improving. The Japanese yen is essentially considered to be a “safety currency”, so having said that it makes sense that calls will be bought in certain currency pairs such as the USD/JPY market, the EUR/JPY market and so on.