18 Dec 2014
FX Movers: Volatility hits EUR and JPY as FOMC strengthens USD
FXStreet (Barcelona) - The FOMC meeting was a clear market mover as a lot of price action was seen after the Fed replaced its “considerable time” phrase with “can be patient”, but keeping the meaning unchanged. The Fed also acknowledged the impact on inflation due to lower oil prices, lowering its inflation forecast. The PCE inflation is expected to remain with a central tendency of 1.0-1.6% (previous 1.6-1.9%).
The recovering USD affected the EUR and JPY crosses, which experienced high volatility during the FOMC meet. JPY is down 0.11% against the dollar, making a high of 119.02 and now trading around 118.56.. AUD/USD made fresh lows after falling below the 0.82 handle, down 0.59% at 0.8169.
The Fed guidance pushed WTI up to 57.72 and Brent higher at 62.03 (currently at 56.60 and 61.17 respectively). This benefited the energy stocks which pushed US indices higher, with Dow Jones up at 1.69%, S&P 500 up 2.04% and Nasdaq gaining 2.12%.
The USD strength also pushed CNY lower. The Chinese Yuan fell to 6.21 versus the USD aided by the comments from the Chinese Government that they were willing to see a lower Yuan.
AUD/CHF (+1.16%) and NZD/CHF (+1.04%) are the biggest movers since yesterday while EUR/AUD (-0.77%), CHF/JPY (-0.73%) and EUR/NZD (-0.62%) are the top 3 losers in the FX space.
The recovering USD affected the EUR and JPY crosses, which experienced high volatility during the FOMC meet. JPY is down 0.11% against the dollar, making a high of 119.02 and now trading around 118.56.. AUD/USD made fresh lows after falling below the 0.82 handle, down 0.59% at 0.8169.
The Fed guidance pushed WTI up to 57.72 and Brent higher at 62.03 (currently at 56.60 and 61.17 respectively). This benefited the energy stocks which pushed US indices higher, with Dow Jones up at 1.69%, S&P 500 up 2.04% and Nasdaq gaining 2.12%.
The USD strength also pushed CNY lower. The Chinese Yuan fell to 6.21 versus the USD aided by the comments from the Chinese Government that they were willing to see a lower Yuan.
AUD/CHF (+1.16%) and NZD/CHF (+1.04%) are the biggest movers since yesterday while EUR/AUD (-0.77%), CHF/JPY (-0.73%) and EUR/NZD (-0.62%) are the top 3 losers in the FX space.