The market slightly drop during the Asian session before tomorrow’s FOMC Statement. As Fed is expected to tight the monetary stimulus and therefore the economy will again loose some of the support from the government, the stock reacted negatively. However, we do not expect that this should be longer-term movement and still we do expect that especially the American stock will pick up from recent lows. On Thursday we do expect a huge day for traders. Starting with Scotland vote for Independence and then IPO of Alibaba. On the back of these events we saw the GBP declining and Yahoo (24% owner of Alibaba) increasing.
On Forex Market The USD/JPY pairing has remained high – above 107 level – however did not managed to break though its resistance at 107.40. The pair climbed to its 6-year high on Friday as market weighed different monetary policies of both central banks. Japanese Yen fell last week as yields of bonds slipped to negative rate. Contrarily U.S. Dollar profited from bullish expectations over interest rate increase. Some analyst predict the pair as high as 110, however, we should be careful with early buying. Today in the morning, Haruhiko Kuroda held a press conference in Osaka saying that the Japanese economy is on course to reach 2% inflation target.
Today’s main events:
08.30 GMT: GBP – Core CPI – measures the changes in the price of goods and services, excluding food and energy
09.00 GMT: EUR – German ZEW Economic Sentiment – measures level of a diffusion index based on surveyed German institutional investors and analysts
12.30 GMT:USD – PPI – measure change in the price of finished goods and services sold by producers
September 16, 2014 – Daily Market News
The market slightly drop during the Asian session before tomorrow’s FOMC Statement. As Fed is expected to tight the monetary stimulus and therefore the economy will again loose some of the support from the government, the stock reacted negatively. However, we do not expect that this should be longer-term movement and still we do expect that especially the American stock will pick up from recent lows. On Thursday we do expect a huge day for traders. Starting with Scotland vote for Independence and then IPO of Alibaba. On the back of these events we saw the GBP declining and Yahoo (24% owner of Alibaba) increasing.
On Forex Market The USD/JPY pairing has remained high – above 107 level – however did not managed to break though its resistance at 107.40. The pair climbed to its 6-year high on Friday as market weighed different monetary policies of both central banks. Japanese Yen fell last week as yields of bonds slipped to negative rate. Contrarily U.S. Dollar profited from bullish expectations over interest rate increase. Some analyst predict the pair as high as 110, however, we should be careful with early buying. Today in the morning, Haruhiko Kuroda held a press conference in Osaka saying that the Japanese economy is on course to reach 2% inflation target.
Today’s main events:
08.30 GMT: GBP – Core CPI – measures the changes in the price of goods and services, excluding food and energy
09.00 GMT: EUR – German ZEW Economic Sentiment – measures level of a diffusion index based on surveyed German institutional investors and analysts
12.30 GMT:USD – PPI – measure change in the price of finished goods and services sold by producers
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