U.S benchmarks slipped sharply into Friday afternoon as Fed rate cut expectations for next week’s meeting were toned down. The table was really set Thursday afternoon when NY Fed President Williams said the Fed should act preemptively to battle slowing growth.
The Federal Reserve is in the driver’s seat and yesterday’s rip higher was the latest example. NY Fed President Williams said the central bank should act quickly and preemptively to fight economic slowdowns.
Improving weather forecast triggered a technical breakdown in yesterday’s session. Soybeans were the surprise of the day, rallying off of technical support on little new news.
The grain markets continue to be trade off of the ever-changing weather forecasts, keeping volatility alive and well. As stated in previous reports over the last week, both the bulls and bears will have days of vindication in the coming weeks and months.
U.S benchmark finished lower yesterday, a day after President Trump poured cold water over trade hopes. One topic at our trade desk yesterday morning was the resilience in U.S Treasuries ahead of U.S hours, as if they were the canary in the coal mine for a weak session to come.
U.S benchmarks are holding ground at record levels ahead of a deluge of bank earnings, economic data and Fed speak. Citigroup kicked things off yesterday beating top and bottom-line estimates but finished near unchanged.
