- Fed sees no interest rate hikes through 2023
- Fed leaves interest rates unchanged
- US 10-year Treasury yield hit a 14-month high
Most of the European indices finished today's session slightly lower as investors waited for the outcome of the FOMC meeting and its outlook on the economy and interest rates. Meantime, the WHO announced that Astrazeneca's coronavirus vaccine should still be used as the benefits outweigh its risks. The German government’s council of economic advisers lowered its full-year 2021 GDP growth forecast to 3.1% from 3.7% previously. On the data front, in February, new car registrations in Europe continued to decline at a double-digit pace, while final CPI data confirmed the annual inflation rate in the euro area is close to its 1 year high. Dax 30 rose 0.27%, CAC40 finished slightly below the flatline and FTSE 100 fell 0.60%.
US indices managed to erase early losses and jumped higher after the FOMC rate decision. Both Dow Jones and the S&P 500 reached fresh intraday records while Nasdaq is trading 0.8% higher. Fed left its benchmark interest rate and asset purchases unchanged. The Central Bank is planning to maintain its current monetary policy until inflation moderately rises above 2 % for some time and longer-term inflation expectations remain well anchored at 2 %. Fed signaled a strong likelihood that there may be no rate hikes through 2023. Policymakers noted however, that indicators of economic activity and employment increased, although the sectors which were significantly affected by the pandemic remained weak. The benchmark 10-year Treasury yield hit a 14-month high of 1.685%.
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Open account Try demo Download mobile app Download mobile appWTI crude fell more than 0.4% and is trading slightly above $64.50 a barrel, while Brent is trading 0.6% lower around $68.00 a barrel. US crude inventories rose by 2.396 million barrels, below analysts' expectations of a 2.964 million advance, according to the EIA Petroleum Status Report. Elsewhere gold rose 0.9% to $ 1,746.00 / oz, while silver is trading 1.9 % higher near $ 26.45 / oz amid a weaker US dollar.
NZDUSD - dollar fell sharply after FOMC decision and pair managed to break above the upper limit of the triangle formation and 200 SMA ( red line). If the current sentiment prevails, upward move could be extended to the 0.7305 handle or even 0.7465 level where February highs are located. On the other hand, the nearest support lies at 0.7207. Source: xStation5
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