The Fed surprised markets and caught them off guard

Daily Analysis - 21/02/2019

The dollar index getting stronger

The dollar index versus a box of 6 important currencies went up 0.1% to 96.568, leaving behind the two-week level of 96.285 recorded last Wednesday. On Thursday the dollar rose following the Federal Reserve's last meeting that strengthened the expectations for a potential U.S. rate increase for 2019. That was happening while traders turned their attention back to trade concerns for new directional signs. The U.S Dollar increased somewhat versus the Japanese yen and cut losses against the euro late on Wednesday following the Fed.

Asia stocks note mixed sentiment

On Thursday Asia stocks were mixed after the initial fall in the morning while investors still consider the statement from the Federal Reserve.

In the Mainland, Chinese stocks noted declines following the day after a hard session which witnessed stocks fluctuating between positive and negative area. The Shanghai Composite slid more than 0.3% to finish at 2,751.79. The Shenzhen component lost about 0.256 to close its trading day at 8,451.70. The Shenzhen composite dropped more than 0.2% to close at about 1, 444.30.

Gold went up 0.1%

On Thursday Gold was exchanging under the prior trading session's 10-month top while the popular greenback went up following minutes from the last U.S. Federal Reserve meeting. That gave expectations the boost needed to support another rate hike this year. The U.S. gold futures moved down 0.5% to $1,340.89 an ounce. The Spot gold went up 0.1% to $1,340.13 per ounce, having reached $1,346.70 per ounce in the prior session. Traders were also closely watching the discussions to settle a trade dispute between China and the United States.

Oil noted new 2019 highs

On Thursday Oil noted 2019 highs, supported by the OPEC-led supply cuts but were blocked from advancing more by the decreasing growth in the global economy. International Brent crude futures were about 6 cents up from their last conclusion at $67.13 per barrel.

U.S. West Texas Intermediate (WTI) crude oil futures were at $57.30 per barrel about 0.3% more their last settlement, but under their 2019 high of $57.53 reached the prior day.

Upcoming Events

Time
Currency
Event
Forecast
Previous

12:30 GMT
EUR
ECB Publishes Account of Monetary Policy Meeting

13:30 GMT
USD
Core Durable Goods Orders (MoM) (Dec)
0.2%
-0.4%

13:30 GMT
USD
Philadelphia Fed Manufacturing Index (Feb)
15.6
17.0

15:00 GMT
USD
Existing Home Sales (Jan)
5.01M
4.99M

16:00 GMT
USD
Crude Oil Inventories
3.080M
3.633M

Ready to trade
Open Account
Share:
Next: Trump eases over the trade deadline