Market participant expected to see more bullish FED
minutes today, but Federal Reserve committee published slightly more dovish
report that most traders expected. As a result US dollar fell, together with
major stock indexes. On the other hand, the minutes are quite positive about
the path US economy is taking with a slight concern about employment situation.
If that improves the stimulation process would end sooner rather than later. Most
speculators expected more hawkish statement though.
Anyway, there is one more risk event lying ahead of
us today and that is Ben Bernanke’s press conference coming in less than one
hour. This can turn things around and US dollar may rebound or continue falling
even faster than after minutes. Oil as you may see is rising. It has broken key
resistance levels and is probably headed to all time high at 150 dollar per
barrel. Gold seems to have formed double top on hourly charts. This is not a
very serious indicator since it is on hourly charts, but I still see it as a
possible sign of a reversal and going down to 1180 low that was reached at the
end of June. I am also bearish towards S&P500 and other stock indexes.
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