FOMC leave rates unchanged at 0.25%!

  •  The Dollar was well supported by Dollar buybacks ahead of the US Interest Rate announcement last night. Most markets were quiet with speculation of further Fed easing helping the stock market to small gains. US stocks at the time, DJIA was up +45 points and the S&P up +6 points.  The Fed left rates unchanged at 0.25% immediately after the dollar lost ground across the board as bank dealers hunted stops on the upside whilst immediately reversing its losses and trading back down below 1.3100 as the market reassess speculation on further QE. US stocks reversed gains and closed in negative territories.

    The Euro fell back from the 1.3300 level with the market cautious of being caught long ahead of tonight's major risk event. On a positive note, August European Sentix jumped 9.8 points to 8.5 for the best reading since 2007. German CPI for July came in at 1.2% for the year and 0.3% for the month; the rise was due to rise in Global Energy and food prices. ECB member Stark was quoted as saying that he sees no major down wards risks to price stability in the foreseeable future. He believes that inflation risks and credit conditions will be the dominant factor in future monetary policy.

 Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.3175 with a preference to enter into Short positions at 1.3165
  • § The USDJPY pivot point is at 85.75 with a preference to enter Short positions at 85.75

              

Today's calendar and market movers:

  • § Germany Trade Balance for June expected at 12.5 bln.
  • § Euro Zone Sentix August forecasted at 1.6
  • § Australia Business Confidence for July, prior months reading 4

 Equity Markets:

  •  US equities closed negative yesterday with the S&P500 at -0.6% and the DJIA at -0.51%. The European bourses were mixed with the FTSE down -0.57% the DAX and the CAC closing at -1.03% and 0.23% respectively. The NIKKEI and the HSI at the time of writing is -2.72% and -0.36% respectively.