FOMC Ended Asset-Purchased Program, USD Strength Across The Board
Easy Forex | Oct 30, 2014 06:26AM ET
Currencies
- The euro (EUR) crashed from 1.2770 to 1.2626 yesterday against the US dollar (USD) after the Federal Reserve officials ended the bond-purchase buying program after 5 years, as the labour market improved. Today the German monthly inflation rate will be announced and is expected to be at 0%.
- The US dollar (USD) skyrocketed to 108.95 yesterday against the Japanese yen (JPY) as the US economy seems to recover faster, increasing the odds for a rise in interest rates next year. The greenback gained versus most major peers yesterday after the FOMC Statement announcement. Today the Japanese yearly inflation rate will be announced with expectations at 2.5% increase, along with the US quarterly Advanced GDP were its expected to be 3.1%.
Equities
- Asian equities gained after Fed ended the bond-purchase program. The Nikkei 225 advanced to 15707, the Hang Seng (CNX) climbed to 7224, the CSI RAFI Hong Kong 50 went to 23882 and the FTSE RAFI India 50 is currently trading near its all-time high at 8197.
Commodities
- (US Soybeans) rose to two month high at 1044.13 USD cents per bushel as railroad traffic in US slowed delivery.
Mover And Shaker With Forex Options
- Gold (XAU) fell to a three week low as the Fed officials were more hawkish than expected at the FOMC Statement. Investors are looking for more riskier assets rather than the safe haven.
- Option traders may consider buying a Put on the XAU/USD and gain if the pair moves lower, while the risk is limited to the premium paid.
Disclaimer: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full risk disclaimer.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.