FOMC Stance pushes Commodities Higher

Posted by Mark Pszeniczny on Jan 26, 2012 4:27:00 PM

Late yesterday we saw the overnight pits shoot higher once news surfaced that the FED was of the position to keep fund rate very low through the foreseeable future.  Citing continued slow economic growth, a European debt crisis, (that I recently read to be compare to "a pimple on a teenage boy") and a persistent unemployment rate that is still around 8.5%, the FED is still considering another round of quantitative easing later this winter.  Commodities have responded positively as the greenback fell to a six week low early this morning.  Still positive signs of an improving economy are are out there as durable good orders for December showed a 3% increase which unfortunately has a bullish effective on Futures.  The range for Heat has not broke and we continue to see sideways action as shown in the chart below.  At the end of the day, Crude added .30 to $99.70, RBOB gained .0128 to $2.8466 and HEAT jumped .0343 to $3.0535.

heat chart

RBOB CLOSE
                 CLOSE       CHANGE 
  
FEB    28466       +.0128
MAR   28508      +.0134
APR    29794      +.0165
MAY   29664       +.0173
JUN   29368       +.0167
JUL    29008       +.0167
HEAT CLOSE
          CLOSE    CHANGE
FEB     30535     +.0343
MAR    30446      +.0342
APR     30244      +.0318
MAY   30043      +.0288
JUN    29911     +.0268
JUL     29899      +.0246

Topics: Commodities, European Economy, FED holds interest rates, FED rates

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