Wednesday, January 28, 2004

How to make money by just having some “Patience” …

As predicted, today FOMC - Federal Open Market Committee left federal funds rates unchanged at 1%, and also surprised the market when decided to change the wording “considerable period” for “can be patient in removing its policy accommodation". Instead of sending signals for a change in policy they sent the message for a possible dollar defense sometime soon, especially against Euro, in fact USD rallied 2% vs. EURO late in the afternoon. US Stocks felt almost 2%, so portfolio managers playing short on CBOT:DJ Index future must be taking profits now. The end of dollar decline seems to be close but will depend on 4Q GDP announcement, and manufacturing and labor reports coming in the next days.

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