SubscribeDaily Futures Commentary October 28, 2009
Wednesday, October 28, 2009
Traders are bracing for this morning’s U.S. Durable Goods, New Home Sales and Crude Oil Inventories Reports. Pre-report estimates are for durable goods to increase by 1%. New home sales are expected to increase from last month to 440K. Crude oil inventories are expected to show an increase of 1.91 million barrels.
The big news, however, is the emerging shift out of higher yielding assets and into more traditional safe-haven investments including the U.S. Dollar and Treasury instruments. This move is taking place because investors are beginning to believe that central banks are on the cusp of pulling liquidity out of their respective economies. These central bank moves should pull the support out from under higher yielding stocks and commodities.
The U.S. Dollar is posting a modest gain this morning, but upside momentum is expected to build throughout the rest of the week in anticipation of a shift from higher yielding currencies into the lower-yielding Dollar. Traders should watch the December Japanese Yen to rally as a change in appetite for risk may shift money from the Dollar and into the Yen. Downside pressure is likely to begin …
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