Daily Futures Commentary September 22, 2009

Brewer Futures

Tuesday, September 22, 2009

U.S. equity futures are called higher this morning as Asian and European investors turned their attention toward risky assets after standing aside for the past three days. Investors are selling Dollars in anticipation of the Fed leaving interest rates unchanged until at least the end of the year. Traders are also expecting to hear good news regarding the global economic recovery from the G-20 meeting later this week. Basically, investors cannot find a reason to buy Dollars other than oversold conditions which were taken care of by the recent two day rally.

Treasury futures are expected to open lower this morning. Investors are selling T-bonds and T-notes in anticipation of the start of this week’s $112 billion auction. With equity markets offering a strong return, Treasuries may need to offer higher yields in order to attract strong demand.

The U.S. Dollar is trading weaker this morning following a two day short-covering rallying. The December Euro is trading at a new high for the year as traders increased demand for higher yielding assets. Higher crude oil and equity prices are helping to support the …
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