Futures News 

Gold futures fall for the session, but post a gain for the week

“The U.S. added 136,000 jobs in September” writes Markets Commodities Reporter for marketwatch.com. Gold futures fell on Friday, easing back from a three-session climb, but tallied a gain of 0.4% for the week on the back of growing expectations for a global economic slowdown. December gold GCZ19, -0.28% fell 90 cents, or nearly 0.1%, to settle at $1,512.90 an ounce.The report “was good on surface, but concerning deeper down,” said Wright, noting that “the additional jobs added in services were offset by decrease in manufacturing.”.  Source: marketwatch.com

Read More
Markets News 

FOMC statement after September rate cut

“Information received since the Federal Open Market Committee met in July indicates that the labor market remains strong and that economic activity has been rising at a moderate rate” writes Jeffry Bartash for marketwatch.com. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Voting against the action were James Bullard, who preferred at this meeting to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent; and Esther L. George and Eric S. Rosengren, who…

Read More
News Regulators 

How Every Fed Member Voted on Today’s Interest Rate Cut

“There are roughly even odds for an interest rate cut in December, and the probability ticks up to 65% for the January 2020 FOMC meeting” reports ccn.com. The Fed’s interest rate decision was not surprising.As expected, the Federal Reserve voted to reduce its interest rate target to 1.75% to 2.00% at its September policy meeting.Right now, Fed funds futures indicate that traders do not expect a third straight interest rate cut at the next FOMC meeting at the end of October. Source: ccn.com

Read More
News 

Video: A look at implied volatility in the week ahead and euro crosses

“But also the week ahead and the event risk through which you, as traders, will have to navigate” reports forexlive.com. I’ll update these key trading variables early in the week, but 1-week implied volatility does take into account the FOMC meeting, so I don’t think it is certainly relevant.Using this volatility, we can assess the expected move (up or down), which can define our risk and position sizing. Source: forexlive.com

Read More
News Regulators 

3 reasons why the Fed wants to keep raising interest rates

“Subtracting that inflation from the 2% nominal federal funds interest rate implies that the real interest rate was slightly negative before the recent increase and approximately zero even after it” writes Martin Feldstein for marketwatch.com. An extremely low real interest rate can cause a variety of serious problems.Determining the appropriate level of the interest rate depends on balancing a changing array of considerations.These three reasons, and perhaps others, justify the view at the FOMC that the current interest rate is too low and needs to be raised.First, the current level…

Read More
Markets News 

Text of FOMC statement for December

“On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent” reports marketwatch.com. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.Here is the text of the Federal Open Market Committee decision for December, released on Wednesday: “Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that…

Read More
JPY News Regulators 

USD/JPY set to continue walking on a tightrope into FOMC meeting decision

“E-minis are trading up by 0.6% currently at session highs though Asian equities aren’t faring all too well so far” reports forexlive.com. It’s a fine balance and markets could easily shift focus from one rhetoric to another after the decision is made.It sure doesn’t look like equities are offering much direction for the yen if anything else as the signals are mixed. Source: forexlive.com

Read More
Markets News 

Text of September FOMC statement

“On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent” reports marketwatch.com. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 2 to 2-1/4 percent. Source: marketwatch.com

Read More