MORNING BRIEFING: Fed watching USD movements; Fed’s Evans interprets policy stance.

[RTFX-Trading]

MORNING BRIEFING: Fed watching USD movements; Fed’s Evans interprets policy stance.

What’s new:
Switzerland: Swiss Franc stays below 1.50 on bets that SNB won’t act.
Japan: BoJ Governor Shirakawa says BoJ to keep rates at practically zero persistently.
China: Expects no rapid rebound in exports.
United States: Fed’s Evans interprets ‘extended period’ phrase, while continues to monitor USD.

Today:


Overnight Rates and Indices:
EURUSD: 1.4331 – 1.4265.
USDCHF: 1.0473 – 1.0443.
GBPUSD: 1.6100 – 1.6031.
EURJPY: 130.72 – 129.96.
USDJPY: 91.48 – 91.00.
DowJones: 10’414.14 +0.83%
NASDAQ: 2’237.66 +1.17%
S&P 500: 1’114.05 +1.05%
Nikkei: 10’378.03 +1.91%.
Shanghai: 3’050.52 -2.32%,
Gold: $1’094.80
Crude Oil: $73.95
 
Comments:

The Dollar weakened slightly in Asian trading, as equity markets were stronger in a quiet session with the Nikkei posting a 1.9% increase. Chicago FED President gave an interview in which he gave his own interpretation of the term ‘extended period’ saying that it may only apply to the next 3 or 4 policy meetings. He also said that the jobless rate could go higher and the FED will continue to monitor fluctuations in the US Dollar, however these are not likely to alter the inflation picture.

Investors seem to be waiting for the next US labor figures in January as a signal to a shift in the FED’s policy. Today, the market will be looking at GDP figures from the UK and US, as well as PCE numbers from the US.

Have a nice day.

Emman Xuereb
RTFX Ltd
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