The FOMC statement was released yesterday and showed optimism regarding the U.S economy. Members of the committee expressed belief that the economy is improving at a ‘solid’ pace and that the labour market conditions are advancing making the possibility of hiking interest rates during the first half of the year more likely. U.S markets finished lower; at session close the S&P 500 was 1.35% lower at 2,002.16 and the Dow Jones was 1.13% lower at 17,191.37. Asian markets declined across the region. The Nikkei lost 1.06% despite the fact that the Dollar climbed against the Yen due to weaker than expected earnings. The Hang Seng lost 1.07% as traders tracked the direction of U.S markets. European markets are mixed today. The FTSE 100 is down 0.83% as shares are hit further by falling oil prices and weak earnings. The DAX is down 0.48% after German CPI data missed expectations; the yearly CPI declined by 0.3% and the monthly by 1%. The CAC 40, however, is up 0.02%.
WTI Crude dropped to a 6 year low following an inventory report from the EIA. The report showed that supplies in the U.S climbed by 9million barrels over the past week, much above the expected increase of 4.2 million barrels. The stronger Dollar also affects the price so traders should focus on U.S data including Pending Home Sales later today. Gold declined and reached a low of 1,264 following the FOMC statement. It is widely expected that interest rates will now be increased in June reducing the appeal of the safe haven asset. In addition, the metal moves inversely to the Dollar which is appreciating on the back of strong data.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Rate – measures the change in the number of unemployed people during the previous month.
15.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
23.30 GMT: JPY – Household Spending – measures the change in the inflation-adjusted value of all expenditures by consumers.
January 29, 2015 – Daily Market News
Today’s Hot Asset: USD
The FOMC statement was released yesterday and showed optimism regarding the U.S economy. Members of the committee expressed belief that the economy is improving at a ‘solid’ pace and that the labour market conditions are advancing making the possibility of hiking interest rates during the first half of the year more likely. U.S markets finished lower; at session close the S&P 500 was 1.35% lower at 2,002.16 and the Dow Jones was 1.13% lower at 17,191.37. Asian markets declined across the region. The Nikkei lost 1.06% despite the fact that the Dollar climbed against the Yen due to weaker than expected earnings. The Hang Seng lost 1.07% as traders tracked the direction of U.S markets. European markets are mixed today. The FTSE 100 is down 0.83% as shares are hit further by falling oil prices and weak earnings. The DAX is down 0.48% after German CPI data missed expectations; the yearly CPI declined by 0.3% and the monthly by 1%. The CAC 40, however, is up 0.02%.
WTI Crude dropped to a 6 year low following an inventory report from the EIA. The report showed that supplies in the U.S climbed by 9million barrels over the past week, much above the expected increase of 4.2 million barrels. The stronger Dollar also affects the price so traders should focus on U.S data including Pending Home Sales later today. Gold declined and reached a low of 1,264 following the FOMC statement. It is widely expected that interest rates will now be increased in June reducing the appeal of the safe haven asset. In addition, the metal moves inversely to the Dollar which is appreciating on the back of strong data.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Rate – measures the change in the number of unemployed people during the previous month.
15.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
23.30 GMT: JPY – Household Spending – measures the change in the inflation-adjusted value of all expenditures by consumers.
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