SubscribeDaily Futures Commentary June 17, 2009
Wednesday, June 17, 2009
This morning the government reported that U.S. consumer prices edged up to 0.1% in May. This report indicates that inflation is not yet the issue that traders speculated it would be following months of Treasury debt auctions. Based on the results of this report, it looks as if the debate will rage on as to when high inflation will return.
This report also confirms what the Fed has been saying and that is, inflation will not be an issue this year.
Prior to the report, the U.S. Dollar was trading slightly better overnight. Now it looks like a mixed picture with the Dollar beginning to lose ground. The direction of the Dollar will be the key as to how the other markets will trade. This is how it’s been all week.
A stronger Dollar will mean traders will be more averse to risk. This would put downside pressure on equities and commodities. A weaker Dollar will help increase demand for higher risk assets.
There has been almost no reaction in the equity markets to the CPI report. The September Emini was trading lower into the number …
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