The U.S. released Housing Starts and CPI data yesterday. Despite inflation growing at the slowest pace since March, the market reacted positively. At session close the S&P 500 was 0.5% higher. Asian markets climbed across the region. The Nikkei added 0.03% as the Dollar strengthened significantly against the Yen, the dollar was buying ¥102.97 compared to ¥102.62 the previous day. The Hang Seng added0.15% ,after hitting its highest level in 6 years a day earlier, as optimism was boosted by the ‘through train’ scheme which will allow trading between markets. European markets are lower today as investors are apprehensive ahead of the FOMC Meeting Minutes which will be released at 6pm GMT.
WTI Crude declined after the API released better than expected inventory data. The price reached a low of $92.60/barrel but is now climbing as losses seemed to be excessive. Gains are also due to speculation ahead of further inventory data from the EIA at 2.30pm GMT. Gold declined after the positive U.S. data was released. The price is currently ranging but we expect there to be higher volatility when the FOMC Meeting Minutes are released. Any signs of a faster recovery or an interest rate increase might push the price sharply down. On the other side, traders should also keep an eye on the geopolitical tension in the Middle East as a ceasefire between the Gaza strip and Israel collapsed yesterday.
Today’s Main Events:
08.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates
18.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
August 20, 2014 – Daily Market News
Today’s Hot Assets: USD, Gold
The U.S. released Housing Starts and CPI data yesterday. Despite inflation growing at the slowest pace since March, the market reacted positively. At session close the S&P 500 was 0.5% higher. Asian markets climbed across the region. The Nikkei added 0.03% as the Dollar strengthened significantly against the Yen, the dollar was buying ¥102.97 compared to ¥102.62 the previous day. The Hang Seng added0.15% ,after hitting its highest level in 6 years a day earlier, as optimism was boosted by the ‘through train’ scheme which will allow trading between markets. European markets are lower today as investors are apprehensive ahead of the FOMC Meeting Minutes which will be released at 6pm GMT.
WTI Crude declined after the API released better than expected inventory data. The price reached a low of $92.60/barrel but is now climbing as losses seemed to be excessive. Gains are also due to speculation ahead of further inventory data from the EIA at 2.30pm GMT. Gold declined after the positive U.S. data was released. The price is currently ranging but we expect there to be higher volatility when the FOMC Meeting Minutes are released. Any signs of a faster recovery or an interest rate increase might push the price sharply down. On the other side, traders should also keep an eye on the geopolitical tension in the Middle East as a ceasefire between the Gaza strip and Israel collapsed yesterday.
Today’s Main Events:
08.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates
18.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
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