Terri Belkas offers a scenario analysis for the Federal Reserve in September and the rest of the year.

Today’s recovery in the US stock market, carry trades and bond yields brought optimism back into the financial markets.

The US economic calendar has been remarkably thin this week, leaving the fixed income, forex, and equity markets to trade off of news regarding the liquidity crunch.

Chinese stock markets rallied past the 5000 benchmark reading for the first time as speculation continues to pour into the world’s fastest growing economy.

The US dollar dropped against all major currencies except the Japanese Yen, as an ease in risk aversion led the forex carry trade higher on the day.

The markets are tossing in the towel for a retest of the August lows, because of the equity and carry trade strength in the past 48 hours.

Currency technical analyst Jamie Saettele analyzes the Australian dollar against the Canadian dollar, Japanese yen, and New Zealand dollar.

The bullish EUR/USD scenario is playing out as expected. There is a slight change in the wave count from yesterday, with the result being a more bullish count.

Both currency and equity markets stabilized overnight, and the general calm helped to support carry trades as various yen crosses firmed in Asia and early European trade.

Price Headley discusses the four fears so you can and implement strategies that will address your fears and let you get on with your trading plan.