Market prices for commodities – particularly metals and energy – fell on Tuesday as investors digested the latest economic news. News from the Eurozone countries has been especially worrisome with the Greek credit crisis taking center stage, but it is the cracks starting to appear in Germany’s economy that had many running for the safety of the dollar today.
Germany is seen as the most stable and robust economy in the Eurozone, so yesterday’s report that German business confidence had dropped for the first time in 10 months, hit the markets like a shockwave.
“The dollar strength is about euro weakness,” said James Dailey, chief investment officer at Team Financial. Dailey noted that energy and metals trading has been closely linked to the move of the dollar recently and the trend is likely to continue in the short-term.
Source: Associated Press
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