FXstreet.com (Córdoba) - Markets in Europe and in America finished at the highest level in more than a year. The Dow Jones finished above the 10,000 level for the first time since October 3 of 2008. JP Morgan 3Q results fueled hopes for the earnings season. The Dollar plunged to fresh 14-months across the board.
The minutes of the FOMC showed that interest rates will remain exceptionally low for an extended period of time and boosted the rally against Greenback.
The Northern Trust Economic Research Deparment affirms: The minutes of the September 22-23 FOMC meeting contain the typical pros and cons of Fed policy, with nothing standing out. The willingness of some members to enlarge the size of the mortgage-backed securities purchase plan could be raised to reduce economic slack more quickly than in the baseline outlook. At the same time, another member held the opinion that improvements underway implied a reduction of these purchases. The importance of flexibility to expand purchases of assets in the event of a deterioration of economic conditions was noted.
EUR/USD finished above 1.4900 for the first time since October 8 of last year. Against the Swiss Franc, Dollar ended at the lowest levels since July of 2008. The Swiss rose also against EUR, GBP and JPY.
The Yen ended mix across the board. USD/JPY traded below 89.00 but it was rejected from there and rose back above 89.40. Despite falling for the day, the pair finished far from intra-day lows. EUR/JPY and GBP/JPY ended near the same prices it had at the beginning of the day.
Cable rose against the Dollar but failed to hold above 1.6000. GBP/USD finished in positive for the second day in a row and moves away from intra-week lows.
Crude oil continues to rise and is already above $75 a barrel. Gold once again peaked at fresh record highs. Currencies tied to commodities also jumped against the Dollar and posted fresh 14-month highs.
Korman Tam, from Forexnews.com comments on Thursday's session: The calendar for Thursday will see a barrage of key reports, including weekly jobless claims, September CPI, October NY Fed manufacturing survey and the October Philadelphia Fed business index. The headline CPI figures for September are seen increasing by 0.2% on a monthly basis and lower by 1.4% on an annualized basis. The core CPI readings are expected to increase by 0.1% m/m and 1.4% y/y. Meanwhile, the October Philadelphia Fed manufacturing survey is expected to slip to 12.0 from a 14.1 reading in September.