Dollar Lows as Traders Await FOMC
U.S. 10-year Treasury bond prices were mostly flat today, ahead of tomorrow’s
key Fed rate decision. Traders are undecided about whether the Fed will cut or
hold, but the negative economic momentum over the past months has left many
traders betting on a cut. Bonds typically fall on economic strength and rise on
weakness, so tomorrow’s Fed action, or lack thereof, should lead to some
exciting market action.
The dollar hit new record lows versus the euro, after reversing some positive
gains from early in the morning, following a negative consumer confidence
report. The dollar has been getting killed lately, on overall negative sentiment
and underlying economic weakness. Today’s Fed announcement should bring some
action into the market. Most of the majors were flat ahead of the Fed report.
The dollar was down slightly on the Canadian dollar, and also fell versus the
British pound.
Crude oil futures fell around 2.5% today, but still closed above $90 a
barrel. Goldman Sachs told clients to take profits at these high levels, and
crude fell on broad over-bought conditions. Crude oil futures dipped over the
summer from record highs, only to turn around and rocket to recent records.
Natural gas futures were up about 0.8%.
Gold futures fell with oil, down around 0.8%. Gold normally trades inversely
to the dollar and with crude oil, and today, gold traders focused on crude
weakness. As crude fell from highs, traders sold gold, and ignored potential
dollar weakness.. Copper futures also fell, down around 1%.
Grains were lower today. Soybeans fell about 2%, while corn dropped 1.5%.
Stocks closed lower, ahead of the Fed’s decision on interest rates. Click
here for the rest of today’s
Stock Market Recap.
Economic News |
|
|