Asian, and European Markets, Commodities up - US Market Quiet and Low
Following Stocks Federal Reserve announcement that it will keep interest rates near zero for two more years, commodity, stock, and currency markets reacted.
This much awaited announcement will facilitate liquidity on one hand, but on the other it also indicates the economy will be under performing for an extended period of time to come back on track.
However, the announcement came without frills, and the Federal Reserve in no uncertain terms acknowledged the facts concerning the struggling state of economic affairs and that volatility was likely to continue and the situation was not expected to change overnight.
The investor was running hap hazard for a while, and the US market experienced a dip. Price of US dollar pulled back to support at 9508; A break below this exposes 9457; Near-term resistance is considered at 9551. Dollar prices are likely to be influenced by market sentiment for a while which remains uncertain as of now.
Movements in some currency pairs have been seen because of the data & announcements which have come from individual countries more than anything else. The dollar has gained on Franc after the Swiss National Bank informed that it would be taking positive measures to strengthen franc.
Safe bets like gold, Japanese Yen, and Swiss Franc remained investor’s favorite buys.
It is being widely discussed that while Euro is likely to improve, Yen may weaken as Treasury prices pull back, resulting in improving US yields against their Japanese counterparts. Also, Swiss Franc has enjoyed quite a decent run during past few months and a correction or sharp reverse course cannot be ruled out. Investors should be ready with a strategy and be on a lookout for any such sign.
Bank of England Quarterly Inflation Report announcement today made at 5:30 EDT was considered important because depending on the stance government took, and the impact was likely to be felt on British Pound, GBP/USD pair. After announcement was made British Pound extended losses and Sterling fell.
Gold rally continued. Major Asian and European markets rose Wednesday, but US was quiet and opened low. Nikkei rose; Germany’s DAX rose 2.2%; Britain’s FTSE 100 and France’s CAC40 also closed high.
Commodities and commodity related currencies (oil, industrial metals, and Australian Dollar) – all of them are directly related to economic growth and they all went up.
Source: Forexoma.com
Following Stocks Federal Reserve announcement that it will keep interest rates near zero for two more years, commodity, stock, and currency markets reacted.
This much awaited announcement will facilitate liquidity on one hand, but on the other it also indicates the economy will be under performing for an extended period of time to come back on track.
However, the announcement came without frills, and the Federal Reserve in no uncertain terms acknowledged the facts concerning the struggling state of economic affairs and that volatility was likely to continue and the situation was not expected to change overnight.
The investor was running hap hazard for a while, and the US market experienced a dip. Price of US dollar pulled back to support at 9508; A break below this exposes 9457; Near-term resistance is considered at 9551. Dollar prices are likely to be influenced by market sentiment for a while which remains uncertain as of now.
Movements in some currency pairs have been seen because of the data & announcements which have come from individual countries more than anything else. The dollar has gained on Franc after the Swiss National Bank informed that it would be taking positive measures to strengthen franc.
Safe bets like gold, Japanese Yen, and Swiss Franc remained investor’s favorite buys.
It is being widely discussed that while Euro is likely to improve, Yen may weaken as Treasury prices pull back, resulting in improving US yields against their Japanese counterparts. Also, Swiss Franc has enjoyed quite a decent run during past few months and a correction or sharp reverse course cannot be ruled out. Investors should be ready with a strategy and be on a lookout for any such sign.
Bank of England Quarterly Inflation Report announcement today made at 5:30 EDT was considered important because depending on the stance government took, and the impact was likely to be felt on British Pound, GBP/USD pair. After announcement was made British Pound extended losses and Sterling fell.
Gold rally continued. Major Asian and European markets rose Wednesday, but US was quiet and opened low. Nikkei rose; Germany’s DAX rose 2.2%; Britain’s FTSE 100 and France’s CAC40 also closed high.
Commodities and commodity related currencies (oil, industrial metals, and Australian Dollar) – all of them are directly related to economic growth and they all went up.
Source: Forexoma.com
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