The Advisor Weblog

Low for an extended period
Hourly perspective for majors
Majors’s sentiment for today
Starting the day

Posted: 23 Sep 2009 11:58 AM PDT

FED is finally here, and as expected, they leave rates unchanged, adding that “the Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” Also, they added that ”Economic activity has picked up following its severe downturn,” and “conditions in financial markets have improved further, and activity in the housing sector has increased.” rates will remain low as ”the Committee expects that inflation will remain subdued for some time.” First reaction has send dollar down across the board, yet not under previous daily lows, with U.S. stocks rising strongly printing fresh yearly highs, S&P at 1079 and DJIA at 9917. Gold also spike to the 1018 level, but all, majors, stocks and gold retreat from highs.

Maybe we could see some profit taking, or position covering, yet news are no good for dollar. A trend reversal keeps diluting after this report; let’s see how the end days, yet if majors keep hovering around daily highs dollar could extend the fall in the midterm.

Hourly perspective for majors

Posted: 23 Sep 2009 06:33 AM PDT

Here is the link for the hourly perspective in majors. Really market remains too quiet waiting for FOMC. Let’s see if stocks bring it back to life, yet seems unlikely at this point.

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2009-09-23.v02.html

Majors’s sentiment for today

Posted: 23 Sep 2009 04:47 AM PDT

Here is majors sentiment for today:

Eur/Usd: Neutral

Gbp/Usd: Bullish

Usd/Chf: Neutral

Usd/Jpy: Slightly Bullish

Eur/Gbp: Bearish

Starting the day

Posted: 23 Sep 2009 04:40 AM PDT

Hi everybody and welcome back! we are going to have a long day today.. waiting for FOMC. Market seems pretty quiet at this point, with majors close to Asian opening except for GBP, that rose as expected, after BOE’s minutes showed that the Monetary Policy Committee voted unanimously to keep interest rates on hold, and also the MPC members all agreed to hold the BOE’s asset purchases at GBP175 billion, and that there was no discussion about cutting the rate the BOE pays on commercial banks’ deposits. Yet at first hour of Asia, dollar made a strong downside spike: Euro reached 1.4840, Swissy 1.0160 area, and commodity currencies also fresh yearly highs, to quickly retreat and come back. Why? well, NZD GDP come much better than expected running against greenback and dragging dollar down across the board. Seems amazing but is true. I have never seen such movement triggered by a quite small economy. It usually happens the other way: big economies move smaller ones. I do believe this risk appetite movement has reached dangerous extremes, and that’s quite an example of that, but does not mean is over. Just warning you, don’t get caught late, no time for fooling around in market. Anyway, here is the link for today’s calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!