Futures Market Technical and Fundamental Recap
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Today's Futures Analysis summary
The FOMC decided to leave interest rates at historically low levels while curtailing its government and mortgage buying activity. The choice not to increase it quantitative easing activity helped strengthen the Dollar as it sent a message that the Fed would allow yields to rise.
September Treasury Bond traders must have been anticipating an increase in quantitative easing because they rallied the market into the report. Once the news came out that the Fed was not going to attempt to lower interest rates by purchasing government debt, traders sold off the bonds out of fear of higher interest rates.
The Dollar rallied on Wednesday after the Fed made its announcement and presented its statement. Traders are reacting to the possibility of higher yields in the U.S. If rates go up here, then investors may shift their money to U.S. financial instruments. In doing so, they would have to buy Dollars.
August Gold was surprisingly higher on Wednesday despite the stronger Dollar. This strength was most likely because of the oversold nature of the market. If the Dollar begins a longer-term up trend, then look for August Gold and September Silver to feel downside pressure.
September Crude Oil rallied but remained in a down trend. Today’s action was a retracement against the main trend. This market could accelerate to the down side once the retracement zone at 67.85 to 66.24 is penetrated
By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis .
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