As investors digest the federal reserve’s interest rate decision, the dollar is losing ground. Additionally, European markets are softer after British MP’s approve the first step of the Brexit bill.
Forex to Watch
The greenback grew weaker on the back of a guarded statement from the Federal Reserve. The fed left interest rates unchanged, which was no surprise. The real revelation however, was just how reserved the Fed were. There was no hint at when the Fed might raise interest rates. However, the organisation did acknowledge the shift in ‘’consumer and business sentiment’’ stating that it has ‘’improved’’
The relatively dovish commentary from the Fed sent dollar lower – despite the additional 246k US jobs for the month of January.
Moving across the Atlantic, the UK parliament passed legislation to trigger article 50. Britain can now embark on the two-year task of exiting the single-market and try to pave the way for a ‘’global Britain’’
Anticipation for the Bank of England’s interest rate decision later today, has sent the cable higher, trading at $1.265
On the other side of the world, Australia’s trade surplus exceeded expectations, sending the Aussie dollar higher by 1.5%. The recent increase in commodity prices helped the trade surplus to rise in December.
Gold is stronger on the back of a weaker dollar, trading at $1221.30 in this morning’s session. Crude oil is up 1% this morning, tipping over the $54 mark. Estimates that inventories have been cut by 1m barrels per day edged the price of the commodity higher.
Equities & Earnings
The S&P 500 has dipped 0.3%, trading at $2267. The dip in the index has sent US equities lower. The DJ 30 is edging further away from its $20000 mark, trading at $19754.
In Hong Kong, the HSI has fallen 0.85%, trading at ¥23100. The downward trend comes after weak real estate, telecoms and consumer discretionary data.
As for earnings; Apple rose a staggering 6.13% after releasing their revenues. Facebook’s stock rose 3% on the back of a 53% increase in advertisement profit.
However, European earnings have been mixed. Deutsche bank, fell 6% after releasing its revenues. It’s the second consecutive annual loss for the bank, which was spurred by legal fees and reconstruction costs. Nokia’s earnings fell to €633 million from €1.8 billion. Nevertheless, Thanks to strong sales and better than expected earnings, the stock rose slightly to €4.39.
Coming up in earnings; We have Visa and Amazon.