In the news: The Fed met today and left the benchmark rate unchanged at .25%. In the statement the Fed mentioned it would keep rates low for some time. The Fed also noted it will make some changes in policy, including opening to possibilities of buying long term treasuries and more bad mortgages. Today crude oil staged a comeback late in the trading session, due to the rally in stock markets and an unexpected decline in gasoline inventories. Analysts are speculating the price of crude could reach $50 a barrel by the end of this week or early next week. At the end of the day stocks ended higher led by the financial sector and the Dow closed at +200.72. Later tonight (6 pm EST) the house will vote on President Obama's stimulus package.
In focus today:
GBP/USD: Sterling continued climbing overnight and early this morning in New York. The pair reached a high of 1.4377 in late London, early New York sessions. However, during the fed statement the Cable fell rapidly to 1.4165 where it found temporary support. For now we still believe the pound will continue moving higher at a steady pace, base on the good news from the banking sector in the U.K. last night where it was reassured the UK banks would not have to become nationalized.