Forex

The markets slightly calmed down after recent events in Cypress

Asian and European trading sessions:

Euro: The EUR / USD pair was trading around the level of $ 1.2875 during the Asian session. The markets were calm as they got some relief after statement from the European Central Bank, saying that it will provide the necessary liquidity in existing rules. Today, Frankfurt hosted a meeting of Troika representatives, the ECB, the IMF and the European Commission where the comments on Cyprus will be announced. At the European session the euro strengthened against the dollar due the fact that the Parliament of Cyprus voted against the EU rescue program, and President Nikos Anastasiadis started discussions with party leaders and the head of the Central Bank this morning in an attempt to reach agreement on alternative proposals which will be less damage for private investors. The EUR / USD couple pair rose to $ 1.2971 during the European session.

U.S. Dollar: The dollar slightly weakened ahead of the announcement of the results of the two-day Fed meeting. It was expected that the Federal Open Market Committee would decide to leave the program redemption of government bonds to support economic growth at the same level. The dollar index fell below the 83 level.

British Pound: After a significant decline in the first half of the European session, the pound rose sharply against almost all its rivals, after data provided by the Office of National Statistics showed that the number of people applying for unemployment benefits (Jobless Claims Change ) fell in February, but less than expected. In details, according to the report, the number of applications fell last month to 1.5K while many economists forecasted a drop of 5.2K. Also, the dynamics of trades were influenced by the publication of the minutes of the meeting of the Bank of England for March 6-7, showed that most politicians have expressed the opinion that the increase in bond purchase program could undermine their authority. In addition, it was reported that the level of applications unemployment to employment was 4.7%, unchanged from the previous month, and fully in line with estimates. The GBP / USD pair fell to $ 1.5040 and then rose to $ 1.5185 during the European session.

Japanese Yen: The yen fell against all major currencies, against the background of the recovery of the Asian stock market after its biggest daily drop since seven last months. While waiting for a change in leadership at the Bank of Japan, the currency weakened for the first time in the last four days. The investors expect that the leader party will pursue an aggressive monetary policy. The USD / JPY pair rose to Y95.63 during the European session.


American trading session:

Euro: The euro continued to rise against the dollar after the Federal Reserve signaled that improvements in employment are not sufficient for the politicians for stopping the reducing stimulus incentives. The Fed said that the unemployment rate will reach a threshold level of the central bank's of 6.5% in year of 2015, the rate that allows to increase the interest rates. Mr. Bernanke said that the Fed will continue the quantitative easing program of bond purchases in the amount of $ 85 billion a month, as it aims to reduce the unemployment rate, which has not yet fell below 7% since November 2008 year.

Gold: The April futures price of gold tested today the 1,600 dollars per ounce level on the COMEX. The has asset stopped its four-day rise as calm returned to the markets, which slightly reduced the attractiveness of the gold as an alternative investment.

Oil: The cost of April futures price of WTI oil brand rose to 93.58 dollars a barrel on the New York Mercantile Exchange after a government report showed that U.S. crude inventories unexpectedly fell last week.