Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

>>>Why would oil & gold rise on a Fed cut, or was this just coincidental?<<<

The Cliff's Notes version is the Fed action gave the unequivocal message that the USD would be toast..... dollar down invariably means commodities up!

In the words of Dennis Gartman:

"THE US DOLLAR IS IN SHAMBLES ON THE FOREX MARKET TODAY,
following the truly surprising decision yesterday by the FOMC to cut both the discount rate and the o/n fed funds rate by 50 bps each. The FOMC has sealed the dollar's fate until further notice with this decision. The Committee has given everyone, everywhere the reason and the "green light" to attack the dollar from all sides, knowing that the monetary authorities shall give them "aid and comfort" at any turn. We are witnessing what would seem to be unprecedented price movements by the various currencies in the past twenty four hours.

#msg-23002519