Market Commentary
Fed semantics changes did not spark of a large spec position in the cash and options market for a good reason though the Dollar closed slightly firmer on the March DX contract. There are mixed signals going on which is spooking the larger specs. First Fed Chair Yellen hints of possible rate hikes as part of the going process of acclimatising the market to a new culture of rate rises, then we get a whole load of data to show that consumer prices are not expanding as robustly as we thought. But that, in the wider context of analysis, maybe part of the stability of the consumer price index and climate of benign inflation. The January consumer price index actually fell .7%, in comparison to an estimate of a .6% decline. The January consumer price index decline is really the first year on year decrease since October 2009. Furthermore, given global major central bank sentiments to ease credit rather than constrict and the recent abatement of selling off on the 10yr US Treasury, plus global market interest rate differentials, the case for a Dollar push through the 100 mark is certainly on hold for the moment. But Goldman Sachs are warning of firmer yields in the long run towards the end of this year as bond prices may get routed. Read on Bloomberg here - http://www.bloomberg.com/news/articles/2015-02-27/goldman-asset-predicts-bond-rout-as-standish-sees-low-yields Yet for the moment, easy money is spurring the Us stock market http://www.bloomberg.com/news/videos/2015-02-27/the-fed-is-providing-rocket-fuel-for-u-s-stocks-wren and that is what corporate America still cant get enough of at the moment as interest rate products continue to trade sideways at the bottom of the credit cycle. Oil sank as did the commodities currencies the Aussie and Canadian wholly because of the economic conditions of over supply in the market and record high stock piling. Sooner or later production cut backs have to take effect and political motivations find economic grounding because quite simply we cannot produce more than we can process plus stockpile. The lack of any real scare and confrontational news seem to allow the bullion markets continue to trade in the doldrums.
US DX
95.180 -0.077 -0.10%
Support 93.605 Resistance 96.275
EUR
1.119765 -0.016670 -1.47%
Support 1.10583 Resistance 1.14523
Crude Oil
48.88 +0.71 +1.39%
Support 45.64 Resistance 52.48
Gold
1209.29 +0.99 +0.08%
Support 1,194.6 Resistance 1,227.6
Pieter Bergli - DeLoren Trust Holdings
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