Steady Rates Sink Swiss Franc
Swiss Central bankers held interest rates steady, failing to follow their European counter-parts in raising short-term rates and that sent Swiss francs [SFZ9>SFZ9] .0100 lower to a three-month low of .6441. The franc’s 6/100 Low Volatility reading indicated the December contract could make a big move and its ranking as the weakest member of the Implosion-5 List suggested the direction of the move would be down.
Although the Bank of England raised interest rates 25 basis points yesterday, the December British pound [BPZ9>BPZ9] fell in sympathy with the Swiss unit, falling .0216 to a one-month low of 1.6214.
From the Momentum-5 List, December dollar index futures [DXZ9>DXZ9] rallied as currency futures plummeted, ending .88 higher at 100.30. Record highs in technology equities helped the dollar’s rally as foreign money entered the market.
T-bonds rallied to a 20-day high on the view that the Fed will not raise rates again this year. Recent economic reports and comments from Federal Reserve officials have left the impression that inflation is under control and will not require the Fed to tighten. T-bonds are one of the strongest members of the Momentum-5 List and closed near the top of their range today, gaining 18/32 to 114 3/32.
Stock index futures rallied and registered on the Momentum-5 List again today. December Dow futures [DJZ9>DJZ9] gained 50.0 to 10,705, S&P futures [SPZ9>SPZ9] moved 8.50 higher to 1369.00 and NASDAQ 100 futures [NDZ9>NDZ9] gained 26.50 to 2721.00.
In the energy complex, crude oil and its products rose and natural gas fell. December crude [CLZ9>CLZ9] rose .58 to 23.14, unleaded gas [HUZ9>HUZ9] fell .0093 to .6435 and heating oil [HOZ9>HOZ9] climbed .0096 to .6147. From the Implosion-5 List, natural gas [NGZ9>NGZ9] fell .047 to 2.826.
In the softs, December cocoa [CCZ9>CCZ9] attempted probes to the upside but reversed and tumbled hard to close at a new low, losing 19 to 836.