Today’s sample of Futures Analysis from FuturesHound.com


Equity markets sold off sharply into the close ahead of tomorrow’s Federal Reserve Open Market Committee meeting. Traders have been reluctant to chase stocks higher this week despite better than expected economic news which showed the U.S. economy is improving.

March Treasury Bonds and Treasury Notes traded under pressure all day. Investors continued to drive yields higher in anticipation of a rate hike by the Fed by June 2010. Traders are nervous that the Fed may put out a more hawkish comment tomorrow which may move up the date of the first rate hike in years. Today’s better than expected U.S. producer prices and industrial output reports helped trigger a hard intra-day break in both markets.

February Gold moved higher after trading sharply lower overnight because of the stronger Dollar. Gold bottomed at $1112.00 this morning after the release of the U.S. Producer inflation data. Today’s action could be a sign that traders have exhausted gold’s relationship with the Dollar and may now shift to reacting to an inflationary scenario.

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