Currencies

Base metal prices have peaked according to National Australia Bank but there is further upside in the bulks and rural commodities, particularly wheat and dairy.

A slew of poor economic data and profit reports sent the Dow off into negative territory last night, before everybody remembered the Fed was standing ready.

The only way seems down for US interest rates and thus also for the greenback. SVB’s senior strategist Dave Bhagat agrees, but only for the medium term.

There were economic data released last night, but there will be quite a lot more this week. After posting solid gains it was time to take some money out. The IMF also disappointed the financial sector.

The Dow had added 53 points on the close to finish a tumultuous week up 2.8%.

A once stoic BoE has bowed to Gordon Brown as a result of Northern Rock, while Governor King is burnt at the stake.

Wall Street began to feel more edgy last night as the US dollar accelerated its slide against major currencies. Mixed earnings reports included a shock result from Goldman Sachs.

Positive momentum carried through on Wall Street last night. Base metals in London posted the gains they would have made yesterday had the exchange not closed before the Fed announcement.

July TIC data showed that the flow of foreign funds into the US was already starting to dry up even before the proverbial hit the fan in August.

Just as important as the rate cut itself is the accompanying Fed rhetoric.