Post the FOMC meeting yesterday the Fed didn’t deviate much from their dovish approach. Their focus firmly remains on creating employment as Powell underlined that the 6% unemployment rate is still very much understated. Despite the rise in inflation the Fed remains confident that the rise would not meet the standard for raising interest rates. Tapering asset purchasing has also been put on hold as the Fed will continue its monthly purchasing of $120 Billion in Bonds and Mortgage Backed Securities.
The US indices took the FOMC statements with mixed results as the Nasdaq and S&P were mixed but pushed higher during this morning Asian session. European Indices remain ranging as the Dax and FTSE struggles to push higher.
Gold and Silver both pushed higher on the back of the lack of inflationary action that the Fed seems to ignore, seeing Gold touch 1789 in this morning’s Asian session. As the Dollar weakened post FOMC we saw Brent pushed up higher as $67 was broken.
Bitcoin initially acted positively as it pushed higher post the FOMC announcement before aggressively selling off to the down side continuing the momentum in this morning’s Asian session seeing the alternative asset dropping down to a daily low of 53 476.
During this morning’s Asian session we saw GBP, USD and CAD strength enter the market as the JPY weakened against all major currencies. Be cautious of the USD strength this morning as Advance GDP q/q is set to be released this afternoon with a continuation of yesterday’s FOMC statements to continue forcing the market in its current direction.
2:30pm - Advanced GDP q/q (USD)
2:30pm - Unemployment claims (USD)