SubscribeDaily Futures Commentary September 30, 2009
Wednesday, September 30, 2009
The U.S. Dollar is down substantially across the board as an International Monetary Fund Report encouraged traders to lighten up their recent long positions. Since late last week the U.S. Dollar has been gaining ground versus most major currencies as investors remained skeptical that the global economy was on track for a recovery. Traders have been questioning whether the recovery would be able to sustain itself without the influence of central bank stimulus.
Yesterday’s weaker than expected U.S. consumer confidence report demonstrated that consumers are still the key to a recovery as this poor number ignited a rally in the Dollar and a break in U.S. equities. Overnight, the IMF’s Global Stability Report reassured investors that the global economy would grow faster than expected and erased some of the doubt left in the market following yesterday’s weak U.S. consumer confidence report.
The IMF report reduced estimated losses from the financial crisis by $600 billion to $3.4. In reporting this substantial reduction in its estimate, the IMF said, “systemic risks have been substantially reduced following unprecedented policy actions and nascent signs of improvements in the real economy.” The report …
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