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Futures Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jun 17, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today's Futures Analysis summary

    Wednesday’s futures markets were all about the Dollar. Overnight the Dollar was strong but sentiment began to shift shortly before the U.S. opening and today’s U.S. Consumer Price Index Report. By the time everything was done, the Dollar had weakened but not at the pace it fell last week.

    The CPI Report sent a bearish message to the market about the rate of growth in the U.S. economy and subsequently weakened the Dollar. Traders are now thinking the Fed was right about inflation and are unlikely to begin raising rates anytime soon.

    Next week the Fed meets to discuss monetary policy. This will be the last FOMC meeting until August so they are likely to say something important and profound.

    Foreign Currency futures were stronger on Wednesday following the release of the CPI Report. The trend is currently down on the daily chart for the Euro. Trading has been light this week and could become even more limited until the 24th when the Fed meets. Commodity sensitive Canadian Dollars will take its direction from gold and crude oil.

    Speaking of gold, the precious metal recovered some of the recent loss in a volatile trade. The weaker Dollar helped gold recover after early losses. Traders seemed to have anticipated the weaker CPI number and had very little reaction to the news that inflation had increased at a pace lower than expected.

    November Soybeans had a nice rally on Wednesday. The recent break was attributed to the stronger Dollar. Today’s rally was triggered by the thought that recent heavy rains would limit the amount of acres that would be planted.

    Stock Indices continued their slide on Wednesday, but these markets were able to regain much of the loss at they reached key retracement zones and oversold territory. Fundamentally, this market looks tired so this break is probably necessary to chase out the weaker longs and attract new money.

    By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis.

    Disclaimer: Trading Futures on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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