After a tip toeing session the major U.S stock indices experienced rapid movement following the Feds interest rate decision, soaring higher. The major move came as Ben Bernanke released his rate decision for the month of March, stating that the Fed is going to hold their fund rate at its current 0%-0.25% level. In addition, the Fed stated that inflation shouldn’t be a problem and that they intend to purchase up to $300 billion in longer term bonds to help restore the economy back onto a healthy track.
The major mover of the session was the financial sector, increasing by over 10%. The Hardware industry also received a boost, closing the session with a 10.03% increase.
Stock markets across the globe opened higher today, following the U.S’s session. By taking a look at the traded volume on the U.S markets one can see that yesterday’s session showed a significant change in sentiment. Investors are now hoping that Ben Bernanke’s words last week could be realized, meaning that the U.S economy could see a turnaround by the end of the year.
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Even though today’s session could be characterized by some profit taking, futures in the U.S are now pointing to yet another positive start. A positive close today will make it the eighth positive session in the U.S.
Forex pairs rock
Major volatility was felt across the globe, following the decision. The Dollar index crashed to a new low, allowing counterparts to rally. The major mover of the Forex market was the EUR/USD, smashing through resistance of 1.3080. In less than 5 minutes the Euro gained over 350 pips, while the USD/JPY dropped to lower levels breaking recent range. One should take into consideration that the drop of the USD/JPY could be limited especially as the BOJ reported earlier today that their economy has deteriorated significantly and is likely to get worse due to the lack of consumption abroad.
The Euro’s break caught investor’s eyes, now waiting for a pullback to enter on the next leg up. During the month of March a double bottom formation pattern was formed on the chart, signifying a change of trend. Yesterday’s breakout confirmed the change in trend.
In addition the AUD/USD broke out of range and is now trading around resistance of 0.6862.
Gold makes an impressive turnaround
On the commodity market, Gold and Crude oil jumped higher. Gold presented a volatile session reaching a low of 883.72, before jumping to a high of 948.12. Gold is now trading around resistance of 947.50. Should a break occur, investors will observe the price action carefully especially as Gold is approaching the $1000 psychological level.
Crude oil managed to break range earlier morning, and is now climbing higher. Yesterday’s strong bullish momentum sent this material higher today, breaking a range of 3 months.
Where to now?
Even though European data showed further problems this morning, investors are now looking towards the U.S session for a clear market direction. Even though U.S futures are currently pointing towards a positive start, unemployment claims are scheduled to show a higher figure than last weeks’ and the Philadelphia manufacturing index is expected to show further weakness from the U.S economy.
One should observe the end of the U.S session to determine the direction of all of the tradable assets.
EUR/USD Daily Chart
Gold -Daily Chart
Market Pivot Points
best
enjoy
Dodjit
The major mover of the session was the financial sector, increasing by over 10%. The Hardware industry also received a boost, closing the session with a 10.03% increase.
Stock markets across the globe opened higher today, following the U.S’s session. By taking a look at the traded volume on the U.S markets one can see that yesterday’s session showed a significant change in sentiment. Investors are now hoping that Ben Bernanke’s words last week could be realized, meaning that the U.S economy could see a turnaround by the end of the year.
.
Even though today’s session could be characterized by some profit taking, futures in the U.S are now pointing to yet another positive start. A positive close today will make it the eighth positive session in the U.S.
Forex pairs rock
Major volatility was felt across the globe, following the decision. The Dollar index crashed to a new low, allowing counterparts to rally. The major mover of the Forex market was the EUR/USD, smashing through resistance of 1.3080. In less than 5 minutes the Euro gained over 350 pips, while the USD/JPY dropped to lower levels breaking recent range. One should take into consideration that the drop of the USD/JPY could be limited especially as the BOJ reported earlier today that their economy has deteriorated significantly and is likely to get worse due to the lack of consumption abroad.
The Euro’s break caught investor’s eyes, now waiting for a pullback to enter on the next leg up. During the month of March a double bottom formation pattern was formed on the chart, signifying a change of trend. Yesterday’s breakout confirmed the change in trend.
In addition the AUD/USD broke out of range and is now trading around resistance of 0.6862.
Gold makes an impressive turnaround
On the commodity market, Gold and Crude oil jumped higher. Gold presented a volatile session reaching a low of 883.72, before jumping to a high of 948.12. Gold is now trading around resistance of 947.50. Should a break occur, investors will observe the price action carefully especially as Gold is approaching the $1000 psychological level.
Crude oil managed to break range earlier morning, and is now climbing higher. Yesterday’s strong bullish momentum sent this material higher today, breaking a range of 3 months.
Where to now?
Even though European data showed further problems this morning, investors are now looking towards the U.S session for a clear market direction. Even though U.S futures are currently pointing towards a positive start, unemployment claims are scheduled to show a higher figure than last weeks’ and the Philadelphia manufacturing index is expected to show further weakness from the U.S economy.
One should observe the end of the U.S session to determine the direction of all of the tradable assets.
EUR/USD Daily Chart
Gold -Daily Chart
Market Pivot Points
best
enjoy
Dodjit