Market Analysis & Trading Opportunities – September 18, 2015

During the session on Friday, there is almost nothing to move the markets with any significance, unless of course you’re trading the Canadian dollar. Beyond that, we do not feel that the market will react, and perhaps will still be reacting to the Federal Reserve announcement on Thursday.

1 – During the session on Friday, we believe it will simply be continuation to whatever the market gets on Thursday from the Federal Reserve. Without a doubt, the biggest mover will be the US dollar and perhaps the stock markets. If the Federal Reserve does not raise interest rates, you can anticipate the US dollar falling rapidly. That should be good for commodities and stock markets in general.

2 – On the other hand, if there is an interest-rate hike out of the Federal Reserve, the reality is that we will then have to wait to see what the statement says. If it is only one interest-rate hike, there will probably be fairly negative against the US dollar as well. That doesn’t mean that the US dollar fall significantly, but more or less grind lower slowly. This would be good for stocks and commodities as well.

3 – There is the possibility that the Federal Reserve not only raises interest rates, but perhaps suggests that there are more coming. That’s the case, this will be very strong for the US dollar and commodities will fall in value. However, this is the least likely of scenarios, so at this point in time we believe that the US dollar will lose strength, and commodities such as the WTI Crude Oil and silver will do fairly well.