Welcome to today’s Morning Coffee Break – On the first day of trading this week traders are waking up to lower futures in the U.S. stock indexes after last week’s rally sparked by the Federal Reserve’s aggressive new round of quantitative (QE3) easing last week Thursday.
Gold price continued its climb higher for a second day after Federal Reserve announcement of third round of quantitative easing which weakens the U.S. dollar and in turn strengthen gold’s price as traders look for safety. The FMOC’s announcement of QE3 was more aggressive than most analysts were anticipating with a plan to purchase 40 billion USD in mortgage backed securities on a ongoing unlimited fashion until the U.S. economy
Welcome to today’s Morning Coffee Break – The Federal Reserve decisively stepped off the sidelines with a stronger than expected new round of unlimited quantitative easing (QE3) sending U.S. markets rallying. Market participants are clearly satisfied with the FMOC’s move as U.S. futures are indicating an extension of yesterday’s rally.
The U.S. dollar continues to remain under pressure as the U.S. dollar index trades below the 80 level to 79.68 in anticipation of the Federal Reserve will begin its third round of monetary easing (QE3). Market participants are focusing on tomorrow’s statement from the FMOC scheduled for 12:30 a.m. ET.
U.S. markers end the day yesterday mixed on the Federal Reserves’ extension to year end for Operation Twist and the lowering of GDP forecast. Futures today are suggesting continued red ahead of the bell.
U.S. traders are coming off the best week thus far in 2012. The EU announcement of a plan to bailout Spanish banks is helping to continue the market drive into the start of the new trading week.
Breaking News Federal Reserve Vice-Chair Yellen, said today the Federal Reserve has room to provide further accommodation and highlighted that there are substantial risks to the U.S. economic outlook.
Gold was sharply higher at the close of trade this week with the precious metal surging 3.87% to close at $1622.75 in New York. The rally marks the largest single week advance since the week ending January 27th when prices soared by more than 4.4% as it approached the $1740 level
Index Last High Low Daily Change (%) Daily Range (% of ATR) DJ-FXCM Dollar Index 9830.8 9844.1 9816.27 0.07 55.72% The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.07 percent higher from the open after being oversold on Friday, and the greenback should continue to retrace the decline from earlier this month as we expect the Federal Reserve to conclude its easing cycle this year. However, the technical outlook
Federal Reserve Plans to Continue Holding Hold Interest Rates Steady ‘Until Late 2014
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