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FOMC boosts economic projections
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Stocks jump to new session highs during Powell's presser
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USD gained on monetary policy decision but gave back gains later on
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Upbeat PMIs from Europe
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US lawmakers are closing in on $900 billion stimulus
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Bitcoin jumps above $20,000
The FOMC decision was a key event of the day. Rates and asset purchase programmes were left unchanged, economic projections were boosted and the dot-chart showed little change compared to September. Low rates and highly accommodative monetary policy is here to stay for a long time. While equities dropped in the aftermath of decision release, Powell's presser pushed them back onto session highs. US dollar also reversed a post-decision gain. In summary, markets did not learn anything new as outlook is slightly better than previously but still uncertain. A lot of journalists' questions during the press conference were unrelated to things Fed has impact on.
Looking past the FOMC decision, investors were served a fresh set of PMI indices. European releases turned out to be better than expected and have sent indices higher. A slight disappointment was seen in the US services release but the report was not too bad either. However, US retail sales data turned out to be a disappointment with a bigger than expected drop. Some positives came from politics with reports that US lawmakers are closing in on a $900 billion stimulus package that also includes direct payments.
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Create account Try a demo Download mobile app Download mobile appOil benefited from an unexpected drop in inventories. Precious metals took a hit from post-decision USD strengthening but managed to recover as the dollar started to lose ground during Powell's presser.
Bitcoin can be seen as today's winner. Reports on increased interest from institutional investors have sent the digital currency above the $20,000 mark. Upward move did not stop there and cryptocurrency is trading near $20,700 handle at press time.
Bitcoin reaches new all-time high and breaks above $20,000. Source: xStation5
