SubscribeDaily Futures Commentary June 18, 2009
Thursday, June 18, 2009
The lackluster trade in the markets continued overnight with no real movement in commodities and equities. This is most likely because of the lack of fresh news and the fact that most commodity and equity markets have reached short-term retracement areas which have more or less neutralized them.
Overnight a pair of central banks announced no changes in their interest rate policies The Bank of England left rates alone while calling for the economy to be sluggish while it attempts to recover. The Swiss National Bank also left interest rates alone but reemphasized that it will take “firm action†if the Swiss Franc appreciates too much against the Euro. The SNB’s biggest fear is deflation.
With nowhere to go with interest rates and quantitative easing and additional stimulus on hold while the global economies begin to recover from the recession, what central banks say is going to take on more weight than what they do. Take for example the Bank of England’s comment that the economy will be sluggish. This is putting downside pressure on the September British Pound this morning. The SNB comment that it will take …
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