Breaking News

Commodities rally, dollar tumbles after Fed

News Date: 17/3/2016 03:24:22
The Federal Reserve kept its interest rate target unchanged at below 0.50%, but sounded more cautious than expected, cutting its inflation and unemployment forecasts for the next three years and asserting the global risks facing the American economy, which allayed investors' fears of invasive and repetitive rate hikes in the near future, rallying risk assets across the globe.

Wall Street closed at its highest levels this year, with S&P 500 rising 11 points, or 0.56% to end at 2,027, while Dow Jones Industrial Average climbed 74 points, or 0.43% to close at 17,325. NASDAQ Composite led the day higher, advancing 35 points, or 0.75% to end at 4,763.

Commodities rallies as well, with oil prices surging six percent on Wednesday and extending their gains today. Brent crude futures rose 40 cents, or more than one percent to trade at $40.75 a barrel, while U.S. West Texas Intermediate (WTI) gained 70 cents, or two percent to hover around $39.23 a barrel.

The dollar suffered wide losses, with its index falling to one-month low at 95.52, down 0.20% on the day, while tumbling 0.70% against Japan's yen to hover around 111.80. The euro edged up to one-month high at 1.1258, before last trading at 1.1237, up 0.11% on the day.

Investors wait today for the Bank of England's periodic meeting, expected to leave interest rates unchanged at their record low of 0.50%, and its assets purchases program intact as well, while analysts will pore over the official statements to get clues about the bank's future monetary path.

U.S. unemployment claims on the other hand are forecast to have risen to 267 thousand last week from the previous reading's 259 thousand, which would be further negative news for the struggling American dollar.

Latest news

Concerns about a lack of oil production and rising inflation have multiplied, after OPEC + announced the largest supply cut since 2020 before the European Union banned Russian energy, which caused a
10-2022 06 05:42:21

Crude oil futures declined. According to the New York Stock Exchange, crude oil futures were traded in November at a price of 86.12 dollars a barrel, ie, it decreased by 0.46%. And in light of OPEC
10-2022 05 04:16:02

The US dollar fell to its lowest level in two weeks at the beginning of trading on Tuesday, due to the high risk sentiment, while the sterling pound maintained its recent gains after the British gove
10-2022 04 07:12:28

Japanese stocks opened today’s trading on a positive note, dragging its indices to the upside, especially chips and energy stocks. So, the Nikkei index rose by 1.07% to reach 26,215.79 points,
10-2022 03 03:36:24

Wall Street closed yesterday evening sharply lower, because of some economic concerns related to inflation, which could reflect negatively on the US economy, not also this, but also the investor's c
09-2022 30 03:07:57

More News