Filed under: Federal Natl Mtge (FNM), Economic data, Commodities, Oil, DJIA, Housing, Federal Reserve
On the heels of U.S. Federal Reserve Chairman Ben Bernanke’s comments on “renewed turbulence,” many traders and investors across sectors now expect the Fed to cut key short-term interest rates when it meets on December 11, according to one currency trader.
“I won’t give you all the technical indicators, but basically almost all of them are pointing to a rate cut by the Fed when it meets [on December 11],” Currency Trader Andrew Resnick told BloggingStocks Friday. “The issue now is whether the Fed continues to cut after the December meeting.”
Markets rally
Stock rallied early Friday on Bernanke’s comments, with the Dow gaining over 80 points to about 13,394 and the Nasdaq gaining about 4 points to 2,674. Meanwhile, the dollar gained slightly, improving to $1.4730 against the euro and rising to 111.07 yen against the Japanese yen.
“Typically, when the Fed indicates it’s likely to cut rates that causes the dollar to fall, but in this case, the market is saying ‘The Fed is going to help the [U.S.] economy grow faster,’ which is bullish for the dollar,” Resnick said. Resnick added that he was flat - - or had no currency positions - on Friday.
Continue reading Traders now sense Fed rate cut, subprime package
Read | Permalink | Email this | Comments
Entries (RSS)