The FOMC Meeting Minutes were released yesterday. The meeting showed that the Fed plans to end quantitative easing at its October meeting, reducing it by $10 billion each month. They also stated that despite significant improvement in labour data, they do not plan increase interest rates for a considerable amount of time. This was taken as a bullish signal by investors and prices rose. U.S. stocks rose modestly and at session close the S&P 500 was 0.46% higher and the Dow Jones was 0.47% higher. Asian stocks were mixed. The Nikkei lost 0.56% following core machinery orders data which declined by 20%. The Hang Seng added 0.27% as it followed the direction of U.S. markets, brushing off negative trade data from China. European markets are lower for a fifth day ahead of the Interest Rate decision from England being released at 11am GMT. Currently, the DAX is down 1.42% while France’s CAC 40 is off 1.36% and London’s FTSE 100 is lower by 0.73%.
WTI Crude dropped strongly, falling below $103/ barrel. Although inventory data from the EIA was negative, it showed a lower than expected decline in supplies. Oil fields in Libya also resumed production boosting supply and pushing prices down. For now, the movement is sideways. Gold climbed higher after the FOMC minutes as investors welcomed the news that interest rates will not be raised. Support was added as India’s finance minister kept a curb on imports, limiting supply and boosting prices. In addition to this the metal had reached a resistance level and movement could be attributed to technical trading.
Today’s Main Events:
08.00 GMT: EUR – ECB Monthly Report – contains the statistical data that policymakers evaluate when setting interest rates
11.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week.
July 10, 2014 – Daily Market News
Today’s Hot Assets: EUR, GBP, USD
The FOMC Meeting Minutes were released yesterday. The meeting showed that the Fed plans to end quantitative easing at its October meeting, reducing it by $10 billion each month. They also stated that despite significant improvement in labour data, they do not plan increase interest rates for a considerable amount of time. This was taken as a bullish signal by investors and prices rose. U.S. stocks rose modestly and at session close the S&P 500 was 0.46% higher and the Dow Jones was 0.47% higher. Asian stocks were mixed. The Nikkei lost 0.56% following core machinery orders data which declined by 20%. The Hang Seng added 0.27% as it followed the direction of U.S. markets, brushing off negative trade data from China. European markets are lower for a fifth day ahead of the Interest Rate decision from England being released at 11am GMT. Currently, the DAX is down 1.42% while France’s CAC 40 is off 1.36% and London’s FTSE 100 is lower by 0.73%.
WTI Crude dropped strongly, falling below $103/ barrel. Although inventory data from the EIA was negative, it showed a lower than expected decline in supplies. Oil fields in Libya also resumed production boosting supply and pushing prices down. For now, the movement is sideways. Gold climbed higher after the FOMC minutes as investors welcomed the news that interest rates will not be raised. Support was added as India’s finance minister kept a curb on imports, limiting supply and boosting prices. In addition to this the metal had reached a resistance level and movement could be attributed to technical trading.
Today’s Main Events:
08.00 GMT: EUR – ECB Monthly Report – contains the statistical data that policymakers evaluate when setting interest rates
11.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week.
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