The ides of March left little to “beware” of, as KC traded all of a 180 point range, whilst London fell short of a cent trading in a $19 range. Blame it on the fed for lack of any other excuse as markets in general were quiet ahead of the 2:00 p.m. FOMC rate decision. U.S. equities traded slightly higher while crude oil bounced from a November low, treasuries advanced and the dollar weakened slightly ahead of the much anticipated rate increase. Volume in Arabica at 12,135 and Robusta at 5,699 lots had the dubious distinction of being the lowest volume trading sessions of the year. Prices stay within the mid and lower Bollinger bands for the past 10 trading sessions in a 790 point range. Volatility naturally is under pressure, as traders wait with bated breath for something that’s got to give.
The fed raised rates by 25 basis points as was well expected and continued to project 2 more rate hikes this year adding that “near term risks to the economic outlook appear roughly balanced.”