DEC13 coffee futures are now down 14 of the past 17 days, and we wonder when this market will be considered bargain territory! We believe if coffee breaks the $1 mark, we could see some bargain buying ideas take hold of the market.
The major foreign currencies exploded higher yesterday, many of them breaking through some key levels. The DEC13 British pound has sold off today due to a lackluster retail sales number out of the U.K.
For oil, despite yesterday's tipper taper rally parade the market still has to overcome the fact that supply in the U.S. is overwhelming. Brent crude, though, is a bit more delicate and led the rally higher.
The Energy Information Agency shocked the market by reporting that U.S. Crude supply increased by 6.7 million barrels putting supply at the highest level in 82 years. So much for that uptick in gasoline demand.
Oil is backtracking and the outside markets seem to suggest that the Federal Reserve will have to do the same. Oil prices are trying to balance weak manufacturing data out of China versus today's Fed decision.