A strong rally for USD following FOMC minutes

Thursday, April 09, 2015

The USD index rebounded strongly this morning and climbed above 98.00 against a basket of currencies following increasing optimism after yesterday’s release of the latest FOMC minutes. The minutes revealed that US Federal Reserve policy makers were split regarding the timing of an upcoming interest rate rise. Some Fed members were keen on a possible increase as soon as June 2015 following the recent robust US economic indicators while others preferred to wait until 2016.

USD index rallies above 98.00

DXY Curncy (DOLLAR INDEX SPOT)   2015-04-09 08-49-15

In the UK according to the Halifax survey, house prices rose 0.4% m/m in March compared to a 0.3% drop in February and beat analysts’ expectations of a 0.1% rise. Furthermore, Germany’s industrial production increased by 0.2% in February beating analysts’ estimates of 0.1%, while exports surged by 1.5% during the same period and imports climbed higher by 1.8%, both beating estimates. European equity markets climbed higher this morning, supported by the solid economic indicators. The CAC, DAX, IBEX and London equity benchmark indices gained between 0.25% and 0.6% in early trade. The euro extended losses for fourth consecutive session today and slid lower towards 1.0750 against the USD.  

EURUSD slid lower towards 1.0750 

EURUSD Curncy (EUR-USD X-RATE)   2015-04-09 08-23-02

Asian equity markets rebounded and posted strong gains overnight as risk appetite improved. The Nikkei index gained 147.91 points (+0.75%) towards 19,940 and the Hang Seng index rallied over 800 points (+3.05%) above 27,000.

Crude oil prices rebounded from yesterday’s losses and climbed higher this morning as risk appetite increased following the latest release of US FOMC minutes. WTI front month futures climbed higher towards $51.50 per barrel and Brent front month futures gained above $56 per barrel.

   

Events for today:

 

0001

UK

Mar

RICS House Prices

0700

DE

Feb

Trade Balance

0700

DE

Feb

Industrial Production

0930

UK

Feb

Trade Balance & Non EU

1200

UK

Apr

BoE Rate

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

 All times UK Local Time

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