FED is keeping rates on ice

Daily Analysis - 21/03/2019

US Dollar got weaker after dovish Fed

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On Thursday following the Federal Reserve’s dovish tone, the popular greenback registered some declines in the Asia session. Fed disturbed exchanges by dropping all their intentions to increase rates in 2019 a sign that the Fed starts abandoning its three-year plan to normalize policy.

The Fed's move sent the dollar down to 110.46 yen, and its 0.6% decline is the largest decline since the flash crash of early this year. The euro climbed to an almost 2-month top at $1.1420.

That drew the dollar down to 95.905 versus a basket of rival currencies, producing a loss of 0.5% overnight.

Gold supported by the dovish Fed


On Thursday the popular yellow metal Gold rose to a 28-day top as the U.S. Fed cancelled out chances of any interest rate increases in 2019. That happened while a shock cut in U.S. growth outlook added to fears on global economic retardation. The U.S. gold futures scored a 1.3% and went to $1,318.29 an ounce. Spot gold advanced 0.5% to $1,318.43 per ounce after reaching its highest since last month at $1,319.00 earlier in the session.

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Asia stocks registered profits


Asia stocks registered profits following the U.S. Federal Reserve dovish tone. The Fed published that it is going to keep interest rates on hold for 2019. Mainland Chinese stocks advanced by the morning session's end, while the Shanghai Composite improved more than 0.7%. The Shenzhen Composite rose more than 0.9% and the Shenzhen component gained about 0.7%.

The broad MSCI Asia-ex Japan index climbed 0.4% to 531.46.

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Oil scored its year high


Oil touched its highest level for this year early today while global exchanges contracted due to supply cuts driven by OPEC and U.S. government penalties toward Iran and Venezuela. U.S. West Texas Intermediate (WTI) crude futures reached the last year high of $60.26 per barrel today while

The International Brent crude oil futures also hit a 2018 high of $68.65 per barrel around on Thursday, that's up about 0.2% from their last close.

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