SubscribeDaily Futures Commentary November 4, 2009
Wednesday, November 4, 2009
The U.S. Dollar is trading lower against most currencies with the exception of the Japanese Yen as stronger equity markets in Europe and Asia helped drive up demand for higher yielding assets. Trading was thin overnight and is expected to remain that way until the Fed FOMC announcement later in the day. The first order of business today that traders will react to is the ADP Employment Report and the ISM Services Report.
Traders are confident the Fed will leave interest rates at historically low levels, but are undecided about the language the Fed will use to describe an exit strategy or an interest rate hike. Investors want to know what the strategy will look like. The main concern among investors is the Fed will act too soon to remove stimulus. This is why the focus will be on what the Fed does with last month’s statement which said interest rates will remain low for an “extended period”.
In my opinion, the Fed will leave interest rates unchanged while highlighting the strength in the economy. This should lead to a …
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