This morning’s better than expected U.S. Weekly Initial Claims helped boost stock index futures this morning. Traders seem a little reluctant to break out above the recent highs, but a pick-up in momentum later in the after noon should trigger a strong rally. Overbought condition should make traders leery of a possible closing price reversal top on the close.
The U.S. Dollar is trading mostly weaker at the midsession after erasing early session gains. The inability to break the U.S. equity markets is renewing interest in higher risk currencies.
Early this morning the Bank of England voted to leave its benchmark interest rate unchanged at 0.50%. In addition, no changes were made to its quantitative easing program. The big concern for traders was whether the BoE would reduce the interest rate it pays on reserve bank deposits. The BoE decided to leave this rate unchanged. The positive developments from the meeting are helping to boost the September British Pound at the midsession.
December Treasury Bonds and Notes are trading higher this morning. Yesterday’s $20 billion 10-year Note auction went off without a hitch. Oversold conditions may be providing support today along with optimism regarding today’s 30-year Bond auction.
December Gold opened sharply lower this morning but gradually lost ground as the Dollar’s gains quickly eroded. Last night’s break helped to form a new top at 1009.70. The new downside target for this break is 970.50. If investors really want gold then look for buyers to step in at this level.
December Crude Oil has been trading mostly higher throughout the day as the OPEC meeting came to an end without any major changes in the supply and demand picture. A less than expected drop in crude oil inventories is also contributing to today’s gains.
The U.S. Dollar is trading mostly weaker at the midsession after erasing early session gains. The inability to break the U.S. equity markets is renewing interest in higher risk currencies.
Early this morning the Bank of England voted to leave its benchmark interest rate unchanged at 0.50%. In addition, no changes were made to its quantitative easing program. The big concern for traders was whether the BoE would reduce the interest rate it pays on reserve bank deposits. The BoE decided to leave this rate unchanged. The positive developments from the meeting are helping to boost the September British Pound at the midsession.
December Treasury Bonds and Notes are trading higher this morning. Yesterday’s $20 billion 10-year Note auction went off without a hitch. Oversold conditions may be providing support today along with optimism regarding today’s 30-year Bond auction.
December Gold opened sharply lower this morning but gradually lost ground as the Dollar’s gains quickly eroded. Last night’s break helped to form a new top at 1009.70. The new downside target for this break is 970.50. If investors really want gold then look for buyers to step in at this level.
December Crude Oil has been trading mostly higher throughout the day as the OPEC meeting came to an end without any major changes in the supply and demand picture. A less than expected drop in crude oil inventories is also contributing to today’s gains.
