Market Review - 29/07/2015 19:57 All times in GMT
U.S. dollar rises broadly on Wednesday after FOMC statement
Although the greenback dropped briefly after the release of FOMC statement, U.S. dollar subsequently fell again due to improved risk aversion as U.S. stock market continued to rise together with the fall in the U.S. treasury yields.
Fed said U.S. economic activity expanding moderately, with solid job gains and declining unemployment. Fed left key policy rate unchanged at 0-0.25 pct. Fed said it will raise interest rates when it has seen some further improvement in labor market and is "reasonably confident" inflation will move back to its 2 pct target. Fed repeated inflation continues to run below objective, partly reflecting earlier declines in energy prices and prices of non-energy imports. Fed said underutilization of labor resources has diminished since early this year; risks to economy and labor market remain nearly balanced. Fed vote in favor of policy was unanimous.
Euro swung wildly on Wednesday. Despite brief bounce to 1.1084 in Asian morning, euro ratcheted lower to 1.1011 in New York morning before rebouding briefly to 1.1080 after FOMC statement but only to fall again to 1.0967 near New York close.
In other news, IMF's Lagarde said 'Chinese economy strong enough to withstand significant variation in markets; received letter from Greek authorities to invite IMF to work with Greeks on proposed debt program; a significant debt restructuring should take place for Greece.'
Despite dollar's brief drop to 123.33 against the Japanese yen in Asia, the greenback ratcheted higher and penetrated Tuesday's 123.80 high to 123.93 in New York morning. Dollar then briefly dropped to 123.55 after FOMC but only to rise to 124.03.
The British pound found buying interest at 1.5588 at European open and then briefly penetrated 1.5676 to a fresh 1-month high at 1.5691 before retreating on profit-taking. The pair later tumbled to as low as 1.5594 on dollar's broad-based strength after FOMC .
Thursday will see the release of New Zealand's building consents, Japan's industrial output and IP forecast, Australia's building approvals, import and export prices, Swiss KOF indicator, Germany's unemployment, eurozone business climate, consumer inflation expectation, consumer confidence, unemployment rate, eurozone unemployment rate, Germany's CPI and HICP, U.S. initial jobless claims.
U.S. dollar rises broadly on Wednesday after FOMC statement
Although the greenback dropped briefly after the release of FOMC statement, U.S. dollar subsequently fell again due to improved risk aversion as U.S. stock market continued to rise together with the fall in the U.S. treasury yields.
Fed said U.S. economic activity expanding moderately, with solid job gains and declining unemployment. Fed left key policy rate unchanged at 0-0.25 pct. Fed said it will raise interest rates when it has seen some further improvement in labor market and is "reasonably confident" inflation will move back to its 2 pct target. Fed repeated inflation continues to run below objective, partly reflecting earlier declines in energy prices and prices of non-energy imports. Fed said underutilization of labor resources has diminished since early this year; risks to economy and labor market remain nearly balanced. Fed vote in favor of policy was unanimous.
Euro swung wildly on Wednesday. Despite brief bounce to 1.1084 in Asian morning, euro ratcheted lower to 1.1011 in New York morning before rebouding briefly to 1.1080 after FOMC statement but only to fall again to 1.0967 near New York close.
In other news, IMF's Lagarde said 'Chinese economy strong enough to withstand significant variation in markets; received letter from Greek authorities to invite IMF to work with Greeks on proposed debt program; a significant debt restructuring should take place for Greece.'
Despite dollar's brief drop to 123.33 against the Japanese yen in Asia, the greenback ratcheted higher and penetrated Tuesday's 123.80 high to 123.93 in New York morning. Dollar then briefly dropped to 123.55 after FOMC but only to rise to 124.03.
The British pound found buying interest at 1.5588 at European open and then briefly penetrated 1.5676 to a fresh 1-month high at 1.5691 before retreating on profit-taking. The pair later tumbled to as low as 1.5594 on dollar's broad-based strength after FOMC .
Thursday will see the release of New Zealand's building consents, Japan's industrial output and IP forecast, Australia's building approvals, import and export prices, Swiss KOF indicator, Germany's unemployment, eurozone business climate, consumer inflation expectation, consumer confidence, unemployment rate, eurozone unemployment rate, Germany's CPI and HICP, U.S. initial jobless claims.
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