Disappointing the financial markets today, the Fed issued what is being interpreted as a surprisingly dovish statement, sending both the US Dollar and stock markets lower. Note that the price plunge on the US Dollar Index futures chart occurred immediately following the issuance of the Fed's statement at 2:15 PM EST. This may be supportive of commodity prices. Gold moved higher as the Dollar moved lower. Ironically, even the stock market indexes sold off following the Fed's move.Wednesday, April 30, 2008
Fed Undercuts Dollar
Disappointing the financial markets today, the Fed issued what is being interpreted as a surprisingly dovish statement, sending both the US Dollar and stock markets lower. Note that the price plunge on the US Dollar Index futures chart occurred immediately following the issuance of the Fed's statement at 2:15 PM EST. This may be supportive of commodity prices. Gold moved higher as the Dollar moved lower. Ironically, even the stock market indexes sold off following the Fed's move.
