Forex

The result of the Fed meeting caused correction in almost all markets

Asian and European trading sessions:

Euro: The EUR / USD pair rose to $ 1.3437 during the Asian session. The support for the currency was provided by published data for Germany, which revealed that the producer prices in January were stronger than expected due to the high cost of electricity. The result suggested that the slowdown in the German consumer price index would be delayed. According to the report, producer prices rose in January by 0.8% in monthly terms and by 1.7 % per year, compared with forecasts at 0.3 % and 1.2 %, respectively. Later on, during the European session, the EUR / USD pair decreased by setting the minimums at $ 1.3363 on expectation of the outcome of the FOMC meeting, which will have to be announced today .

U.S. Dollar: The dollar rose against its competitors during the European session as many market participants were awaiting publication of U.S. data on the housing market, the index of producer prices, and results of the very important event, protocols of FOMC meeting.

British Pound: The pound fell to the lows against its rivals after the Bank of England minutes showed that some officials at this month meeting voted to expand the program of buying assets. The only three politics voted for increased bond purchase program by 25 billion pounds ($ 38.3 billion) to 400 billion pounds, while the remaining six members of the Monetary Policy Committee were against the increase. In addition, the pressure on sterling was supported after reports showed that the policy has been already considered for cutting interest rates. Also exerted pressure on the currency presented data which showed that, according to estimates of the International Labour Organization, the number of unemployed for three months till December 2012 increased by 10K, while the unemployment rate rose to mark of 7.8%, compared to 7.7% three months earlier before November. At the same time, the Office for National Statistics reported that the number of unemployed in the same period decreased by 14K, while the number of employed people increased by 154,000. In addition, the ONS reported that the number of applications for unemployment benefits fell in January by 12,500 to 1.54 million. The GBP / USD pair fell to the low of $ 1.5278 during the European session.

Japanese Yen: The yen rose against the dollar ahead of the meeting between the leaders of Japan and the United States. Investors interested in whether or not Obama would support a policy of Prime Minister Abe. Some countries are concerned that this policy is intended to artificially weaken the yen. The Japanese Prime Minister Shinzo Abe will fly to the U.S. to meet with President Barack Obama by the end of this week. The news that disappointed today many investors was the one that has been published by the Ministry of Finance Japan on trade deficit in country. In January, it was recorded at almost $ 17.5 billion which was a record mark since 1947 year. The amount of imports grew much more strongly due to rising prices for oil and gas. However, the Japanese exports rose for the first time in eight months. The USD / JPY pair fell to a week minimum during the Asian session and then grew during the European session.

New Zealand dollar: After the chairman of the central bank of New Zealand, Mr.Wheeler in his speech to the manufacturers and exporters in Auckland expressed RBNA’s willingness to intervene in monetary policy to weaken the National currency the New Zealand dollar fell against its rivals. Graeme Wheeler noted that the monetary authorities are ready to intervene to decrease the growth of the New Zealand dollar.

American trading session:

U.S. Dollar: The dollar rose sharply against other major currencies against the U.S. publication of minutes FOMC. The currency substantially strengthened after the publication of minutes of the Fed meeting, in which it was noted that “the economy remained on a moderate growth, and tensions in global financial markets have eased. Also, was mentioned that the housing sector is strengthening, and the unemployment rate is likely to continue decline gradually. The solution of the "budget cliff” reduced the downside risks for the economy. "

Gold: The gold was cheaper today as well as in recent days due to better economic performances of Europe and the U.S. and falling of stock markets in this particular session. The April futures price of gold dropped to 1577.50 dollars per ounce on COMEX today.

Oil: The growth of oil supplies to the Midwest of U.S. which was announced by the ”Enterprise Products Partners LP” Company contributed to today’s lower prices of the asset. The company expects increase to 295,000 barrels a day in February-May from 180,000 barrels of January. The cost of March futures of WTI fell to 94. 2 dollars a barrel on the New York Mercantile Exchange.