Today is day two of the FOMCs July meeting with the results of the meeting to be aired at or around 1 PM CST. It is widely expected that there will be no change in rates today, but the tone of the press release will be highly scrutinized for any indication of the Fed`s timing for the first hike since 2006. There likely will be little trading action as market participants wait for the decision and look forward to tomorrow's 2nd quarter GDP data for the US.
WTI crude oil did see some support after the open yesterday as the price discovery did produce some technical reasons to possibly see a bounce higher. Short term trend line resistance violations bolstered by medium term technical exhaustion signals seem to be begging for a correction higher after six days of consecutive down moves. Modest fundamental bullishness was evident as well with the API data showing a larger than expected draw in WTI inventories for the week. Currently, the market remains relatively neutral. Trade and settle above the high yesterday of 48.44, achieved in a furious rally at the 1:30 pit close time, should produce follow through trade higher with 49.22 and 51.40 the next key targets. EIA data will be out today at 9:30 AM CST. The possible rally could either be intensified or derailed demanding on that inventory report.
Natural gas has found some support once again and seems to have resumed its slogging march higher currently trading back in the 2.80 handle. Little news and tired technical points of contention have the trade action muted with volatility barely registering. This type of trade can only be sustained for so long as an eventual breakout one way or another is inevitable, though it seems at these low levels a bet for the breakout to come to the high side would feature considerably better odds.
DISCLAIMER: Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors.