The $ is weak after yesterday’s Fed decision to lower rates by 1/4%, obviously less than the markets expected. Currencies are mixed but rendering a lower $Index. The Yuan and the BRIC are all lower. USDMXN is 19.4224 +0.0254 (+0.13%), USDCOP is 3,369.3101 -3.69 (-0.1094%). The Real closed on a weak note at USDBRL 4.1106 and is indicated at 4.1241 on the CME. The weakness of the EMs is not consistent with the weakness of the $.
Bond futures are mixed but steady as shorts have built lately. Equities and metals are lower but oil is higher as belligerent overtures are following the Saudi explosion of last week. Cocoa and Sugar are higher while cotton is lower.
The market is without direction but appears fragile. 8:00 will hopefully provide a clearer picture.
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