EUR/USD climbed 0.86%. Oil prices down more than 2%.

EUR/USD surged during North American session today after Fed Chair Janet Yellen’s announcement. As of 5:00 PM EDT the currency pair was trading at 1.1292, which is 0.86% above the previous close.

Yellen stated that the Fed have to be cautious concerning the interest rate hikes this year. She also mentioned that she expects the PCE inflation this year to be well below the Fed’s target rate of 2%.

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“The inflation outlook has also become somewhat more uncertain since the turn of the year, in part for reasons related to risks to the outlook for economic growth. To the extent that recent financial market turbulence signals an increased chance of a further slowing of growth abroad, oil prices could resume falling, and the dollar could start rising again” she said.

US shares increased today. Below is presented the performance of major indices:

  • DJIA closed at 17,633.11, up 0.56%.
  • Nasdaq Composite climbed 1.67% finishing at 4,846.62.
  • S&P 500 closed at 2,055.01, which is 0.88% higher than the previous close.

Oil prices dropped today. As of 4:39 PM EDT the WTI Crude was trading at 38.52 USD/bbl down 2.21% and Brent Crude at 39.33 USD/bbl, which is 2.33% lower than the previous close.

Oil Barrels

“The amount of verbal intervention, which has obviously helped the market greatly over the past two months, combined with a production slowdown in the U.S., has probably taken oil as far as it can; now the market really wants to see some action” said Ole Hansen from Saxo Bank.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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