Bonds Rise, Dollar Falls as the Fed Leaves Rates Unchanged
The Federal Reserve left interest rates unchanged, as expected, for the fourth
consecutive meeting sending Treasury prices sharply higher. The U.S. Dollar
moved in the opposite direction, testing the recent 20-month low set against the
Euro.
Above average temperatures in the U.S. and forecasts for more of the same
heading towards the Christmas holiday continued to weigh on energy prices with
Crude Oil falling to a 2-week low. Traders attention now shifts to the EIA’s
inventory report, due for release tomorrow.
The grains were mixed with Wheat and Feeder Cattle prices falling, while Corn
rose.
Economic News
Trade Balance: Consensus $ -63.0 Bln., Actual $ -58.9 Bln.
ICSC-UBS Store Sales: W/W Change 1.0 %, Y/Y Change 3.2 %
Redbook – Store Sales: Y/Y change 2.5%
Treasury Budget: Consensus $ -72.2 Bln., Actual $ -75.6 B
Federal Funds Rate: Consensus 5.25 %, Actual 5.25 %
Ashton Dorkins