US core CPI is -0.1% MoM vs expected +0.1% and pior +0.1%
Market might just make another attempt at taking out 4940-60 in coming couple of sessions
Action - Buy
Script - Berger Paints
CMP - 60.15
Target - 65/69
Stop loss - 57
Holding Period - 7-10 Days
GBPUSD plummeted to the 1.5340-45 area post-data as reactions to the monthly retail sales data sparked a mass exodus. However, upon examining both the upside surprise in the yearly data along with positive revisions to previous data, traders scooped up the British Pound with aggression. GBPUSD is now a full 40 pips off the reaction low.
The dollar strengthened and stocks snapped a four-day rally after the Federal Reserve raised the discount rate. Oil and copper fell.
The dollar appreciated against all but two of its 16 most- traded counterparts at noon in London. The pound plunged to a nine-month low against the dollar. Futures on the S&P’s 500 Index declined 0.7 percent and the MSCI Emerging Markets Index slid the most in two weeks. Crude oil slipped 1.2 percent.
The Federal Reserve Board sent its most explicit signal yet that the emergency supply of liquidity to financial markets is done and the most aggressive monetary policy easing in its 96-year history will eventually reverse.
Chairman Ben S. Bernanke and his colleagues at the Board of Governors raised the rate charged to banks for direct loans by a quarter-point to 0.75 percent, effective today. It was the first increase in the discount rate since June 2006.
The Fed portrayed the decision as a “normalization” of lending that would have no impact on monetary policy, its benchmark federal funds rate would stay low for an “extended period.” The assurances did not stop investors from increasing bets that the Fed would tighten policy.
The dollar strengthened and stocks snapped a four-day rally after the Federal Reserve raised the discount rate. Oil and copper fell.
The dollar appreciated against all but two of its 16 most- traded counterparts at noon in London. The pound plunged to a nine-month low against the dollar. Futures on the S&P’s 500 Index declined 0.7 percent and the MSCI Emerging Markets Index slid the most in two weeks. Crude oil slipped 1.2 percent.
The Federal Reserve Board sent its most explicit signal yet that the emergency supply of liquidity to financial markets is done and the most aggressive monetary policy easing in its 96-year history will eventually reverse.
Chairman Ben S. Bernanke and his colleagues at the Board of Governors raised the rate charged to banks for direct loans by a quarter-point to 0.75 percent, effective today. It was the first increase in the discount rate since June 2006.
The Fed portrayed the decision as a “normalization” of lending that would have no impact on monetary policy, its benchmark federal funds rate would stay low for an “extended period.” The assurances did not stop investors from increasing bets that the Fed would tighten policy.
The trade day in Asia was dominated by the New York news that the US Fed had raised its discount rate by 25 basis points to 0.75%. This has sent the signal that normalcy is slowly returning to the US financial system, fanning the flames that a US rate hike is more likely. This move sent the dollar soaring.
After a start near 1.3620 in the late New York trade day, EUR/USD found itself resting at a nine month low of 1.3442 a few hours into the Asian morning. The same happen with GBP/USD, hitting a 1.5409 nine month low after being positioned near 1.5630 only mere hours before. AUD/USD dropped over 130 pips to post lows near 0.8885.
After a start near 1.3620 in the late New York trade day, EUR/USD found itself resting at a nine month low of 1.3442 a few hours into the Asian morning. The same happen with GBP/USD, hitting a 1.5409 nine month low after being positioned near 1.5630 only mere hours before. AUD/USD dropped over 130 pips to post lows near 0.8885.
The NIKKEI is down about +1.1%, and the U.S. futures are currently pointing to a drop of about -1.0% as well.
American companies recovering from the deepest recession in a lifetime, face a new trouble as the US $ strengthens, threatening profit predictions for 2010.The dollar has gained about 10.7 percent against the euro.
Carl Icahn, billionaire investor, bought the unfinished Fontainebleau Las Vegas casino resort today for “approximately $150 million.” A judge in Miami had approved the sale last month for $156.1 million.
The complex, Fontainebleau Las Vegas LLC and affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp., filed bankruptcy papers in Miami in June, citing assets and debt of more than $1 billion each.
Maria Riesch from Germany won the Olympic gold medal in the women's super-combined as Lindsey Vonn from the U.S. fell just before the finish.
The MSCI Asia Pacific Index, a gauge of the region’s equities, lost 0.5 percent to 117.17 as of 9:43 a.m. in Tokyo. Futures on the Standard & Poor’s 500 Index expiring in March lost 0.8 percent to 1,096.6. The Dollar Index, which tracks the currency against six major U.S. trading partners, rallied 0.7 percent to 80.934. Oil and copper retreated in extended trading.
The Fed's Bullard: Does not see the deficit creating a dollar crisis in near term. Another fed funds rate increase may be delayed until 2011. The US could tighten by using quantitative methods instead of rate hike.
U.S. equity futures and Asian stocks fell, while the dollar rose as an increase in the Fed’s discount rate spurred concern the economic rebound will slow as stimulus programs are unwound.
The complex, Fontainebleau Las Vegas LLC and affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp., filed bankruptcy papers in Miami in June, citing assets and debt of more than $1 billion each.
Maria Riesch from Germany won the Olympic gold medal in the women's super-combined as Lindsey Vonn from the U.S. fell just before the finish.
The MSCI Asia Pacific Index, a gauge of the region’s equities, lost 0.5 percent to 117.17 as of 9:43 a.m. in Tokyo. Futures on the Standard & Poor’s 500 Index expiring in March lost 0.8 percent to 1,096.6. The Dollar Index, which tracks the currency against six major U.S. trading partners, rallied 0.7 percent to 80.934. Oil and copper retreated in extended trading.
The Fed's Bullard: Does not see the deficit creating a dollar crisis in near term. Another fed funds rate increase may be delayed until 2011. The US could tighten by using quantitative methods instead of rate hike.
U.S. equity futures and Asian stocks fell, while the dollar rose as an increase in the Fed’s discount rate spurred concern the economic rebound will slow as stimulus programs are unwound.
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