SubscribeDaily Futures Commentary June 2, 2009
Tuesday, June 2, 2009
Traders should start to watch the currency markets which have central bank meetings this week. These include the Canadian Dollar, Euro and the British Pound. All have reports scheduled for June 4th. Since each market is at an extreme level and by some measures overbought, traders should begin to watch for clues for a top or the start of a trend reversal.
The Bank of Canada is expected to keep its benchmark interest rate at .25%. In addition it is expected to reiterate its stance that the rate will stay at the current level until the second quarter of 2010. Most traders are curious as to how much if any quantitative easing the BoC will apply. At its last meeting, it approved the use of quantitative easing but refused to use it, instead seeking to take a “wait and see†attitude toward the economy.
Although the Canadian export market is improving because of higher industrial metal and crude oil prices, some traders are concerned that the price of the Canadian Dollar may be getting too high. Some feel that a high priced currency will curtail demand for Canadian …
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