Richard Perry
Independent Analyst
With currency pairs still unsure of how to digest the latest instalment of Federal Reserve monetary policy, the equity markets have made a useful rebound. After weekly jobless claims in the US fell to multi-year lows, Wall Street rebounded following two days of sharp losses. The VIX Index of volatility also fell sharply by 8% and back below 20. The S&P 500 closed 1% higher, with Asian markets also following suit. The European markets have also opened slightly higher today. However, the extension of European Union sanctions on Russia may take some of the shine off potential gains.
In forex trading there remains a sense of consolidation on the euro, whilst Dollar/Yen also continues to be range bound. It would appear that even though Japanese inflation came in slightly worse than expected (the national core figure came in at an unadjusted 2.5% from 2.6% expected), there has been little discernible reaction on the yen. The Aussie dollar has bounced slightly after yesterday’s breakdown to a multi-year low.
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