The dollar index surged to 84.814 yesterday

Good Morning,

- The USD was stronger across the board following the release of the nearly unchanged FED’s statement. Dollar index jumps to highest in over four years.

- The dollar index surged to 84.814 yesterday, reaching a high not seen since July 2010, and bringing into view its 2010 peak of 88.708.

- The Fed confirmed last night that its bond-buying stimulus program would end next month, and its new projections suggested some officials saw the risk that rates might have to rise at a faster pace when the bank eventually starts tightening.

- The Federal Reserve stuck to its pledge to keep interest rates near zero for a “considerable time” after it stops buying assets, even as it outlined a strategy to exit from six years of unprecedented easing. “The labor market has yet to fully recover,” Fed Chair Janet Yellen said. “There are still too many people who want jobs but can’t find them,… inflation has been running below the committee’s 2 percent objective,” a contrast to the panel’s July statement that it was “somewhat closer” to its goal.

- Fed Officials predict Fed Funds Rate to rise to 1.375% end-2015, compared with a June forecast of 1.125 percent.

- Deutsche Bank on EUR/CHF: Deutsche Bank believes that there is a strong case for the SNB to cut rates at its meeting on Thursday to negative more than markets appreciate. "We would expect negative rates to put downward pressure on the European short-end and meaningful upward pressure on EUR/CHF in particular. As a result we like the risk reward of being long EUR/CHF with a 1.25 target," DB advises.

- Switzerland's exports fell in August for the first time since May, due to lower sales of chemicals, pharmaceuticals and machinery and electronic products, data showed on Thursday. Demand from the rest of Europe, Switzerland's biggest export market, weakened, noticeably in Germany. Exports dropped by an inflation-adjusted 3.4 percent year-on-year in August to 14.859 billion francs ($15.8 bln), but were up 0.5 percent on a nominal basis.

- The global economy faces a growing risk from big financial market bets that could quickly unravel if investors get spooked by geopolitical tensions or a shift in U.S. interest rate policy, the International Monetary Fund said on Wednesday.

- Mario Draghi’s trillion-euro journey is ready to start. The ECB will announce the result of its first targeted lending program today as part of its effort to stave off deflation in the euro area. The so-called TLTRO is among a package of measures that the ECB’s president says will boost its balance sheet to as much as 3 trillion euros ($3.9 trillion) from 2 trillion euros.

- BOJ’s Kuroda says they will continue easing until 2% inflation stable. Japanese economy is recovering gradually. BOJ easing is exerting intended effects, won’t hesitate to make adjustments if necessary.

- Japan's exports declined in August as shipments to the United States contracted, another sign the economy is struggling to rev up after a deep slump in April-June. Exports fell 1.3 percent in August from a year ago, less than the median estimate for a 2.6 percent annual decline. That followed a 3.9 percent annual gain in the previous month after having fallen in June and May.

- Aussie dollar crushed to new 6-month low at 0.8937.

- Watch today: UK Retail sales, US housing starts, US jobless and…the last round of historic vote on Scotland's future.

Have a nice Day !