Dollar Falls; Speculators Looking for More Fed Quantitative Easing
T-Bond Traders Guess Right as Fed Hints at More Quantitative Easing
December Treasury Bonds were trading firmer on Tuesday even before the FOMC hinted that the Fed was gearing up for another round of quantitative easing.
Early in the trading session T-Bonds pierced a downtrending Gann angle at 131’27, indicating a sign of strength and the potential for a retracement back to 132’12 to 133’04.
Easing of Irish Debt Concerns Help Boost U.S. Equities
An emergency easing by the Bank of Japan may have backfired overnight as the Yen erased its early losses against the major currencies. The BoJ made the move in the hopes it would weaken the Japanese Yen, but instead it’s business as usual this morning with the Yen sharply higher versus the U.S. Dollar.
Easing of Tensions in Euro Zone Fuels New Demand for Risky Assets
U.S. equity markets rallied sharply higher on Thursday as tensions eased in the Euro Zone prompting investors to turn up demand for higher risk assets. The strong surge in the June E-mini S&P 500 negated Wednesday’s hard sell-off, triggering a rally through the minor retracement zone at 1074.50 to 1082.25.
Easing of Investor Risk Sentiment Supporting Equity Markets
The U.S. Dollar finished lower today against a basket of trade weighted currencies. The Greenback was under pressure all day and never quite recovered following an overnight announcement that Dubai received $10 billion in financing from Abu Dhabi to pay part of the debt held by the state-owned Dubai World.