Published On: Thu, Mar 16th, 2017

Morning Market Review


US dollar decreased against majors despite the fact that FOMC increased the interest rate to 1.00%. Yesterday, traders concentrated on J. Yellen comments on FOMC interest rate decision, hoping to get more or less precise information on further interest hikes, which must happen twice more this year according to FOMC members. Yellen mentioned positive changes of labor market and  business climate; however, she avoided announcing next interest rate hike dates and only said that they will raise the rate gradually. Dollar investors were dissapointed by this ambiguity and reacted with massive sales of US currency.

That led to EUR/USD growing by 1.22%, and GBP/USD — by 1.10%.

USD/JPY lost 1.11% and consolidated below 113.00.

AUD/USD grew by 1.68% yesterday. Today’s data from Austraila on labor market ceased the further growth of Australian currency. Employment rate decreased by 6.4K in February, while forecasts predicted it will grow by 16.0K.

Gold rate grew by 1.68% yesterday and continued growing today.

Crude oil was trading in a calm atmosphere, and oil prices grew insignificantly, supported by Energy Information Administration’s weekly US crude oil reserves data. According to it, oil reserves were cut by 0.24 million barrels during the week, while expected to grow by 3.71 million barrels. As a result, Brent grew by 0.89%, WTI — by 0.59%.

American stock market closed in a green zone on Wednesday.

Dow Jones index grew by 0.21%, Nasdaq gained 0.60%, and S&P went down by 0.64%.

European stock market also closed in a green zone.

British FTSE grew by 0.2%, French CAC gained ground by 0.2%, German DAX grew by 0.3%.

Australian S&P/ASX 200 grew by 0.23%.

Forex Analysis

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