Marc Nemenoff
PRICE Futures Group
Canadian $ breaks 2 cents on 25 point basis cut on rates yesterday. ECB announce QE of 60 billion a month through Sept. 2016.
Financials: Mar. Bonds are currently 1’11 lower at 147’24, 10 Yr. Notes 16.5 lower at 128’29 and 5 Yr. notes 7.5 lower at 120’10. We remain short June 2017 Eurodollars (currently 6 lower at 98.17) and are attempting to buy the Sept. 2015 against this position at 99.44 (currently at 99.47).
Grains: Mar. Corn is currently 1’0 higher at 389’0, Mar. Beans 4’2 higher at 987’6 and Mar. Wheat 4’0 higher at 540’6. I remain somewhat friendly to these markets but will wait for a break bewfore I enter into any positions. I will be a small buyer in Mar. Corn below 373’0 and a small buyer in the Mar. Beans in the 965’0 area if the market allows.
Cattle: Feb. LC closed at 153.60 and May FC at 207.45 well above the weekly lows of 151.45 and 203.32 respectively. We were stopped out of a recent long Feb. LC position when the market traded below the 152.80 level putting us on the sidlines. The overall trend remains down and it is expected that runs will remain somewhat heavy for the next 30 days. I am on the sidelines until next week.
Silver: Mar. Silver is currently 3 cents lower at 18.15 and Feb. Gold 4.00 lower at 1289.00. If you went short Silver in 18.40 area (Monday’s stated resistance level) or short Gold in the 1300.00 area, take the short term profit.
S&P's: Mar. S&P’s currently 16.00 higher at 2042.00 rallying since the announcement of ECB quantitative easing policy. Earlier in the week we took profits from short side of the market trading from the 2023.00 level. My bias is now neutral and I will treat the market as a trading affair between 2022.00 and 2047.00.
Currencies: As of this writng the Mar. Euro is currently 15 lower at 1.1585, the Swiss 5 higher at 1.1697, the Yen17 higher at 0.8500 and the Pound 40 higher at 1.5160.
Yesterday in a surprise move Canada lowered rates by 25 basis points breaking the Canadian Dollar more than 2 cents to the 0.8050 level. Minutes ago Mario Draghi of the ECB announced a Quantitative Easing program of 60 Billion Euro’s per month through Sept. 2016 in an effort stimulate inflation. It is not yet clear to me on the details of these purchases of whether Bonds and securities will be purched by the ECB or individual central banks. The immeadiate reaction was a break from the 1.1640 level to 1.1520 and back to 1.1580. I want to continue to treat the Euro as a trading affair from the long side on sharp breaks.
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The valuation of futures and options may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or implied promise, guarantee, or implication by or from The Price Futures Group, Inc. that you will profit or that losses can or will be limited whatsoever. Past performance is not indicative of future results. Information provided on this website is intended solely for informative purpose and is obtained from sources believed to be reliable. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.