EUR/USD jumped 1% after Fed announcement. Oil climbed more than 5%.

 

EUR/USD jumped more than 1% during North American session driven by the announcement from Fed, which held the interest rates unchanged as was expected, but projected fewer rate hikes this year. As of 6:11 PM EDT the pair was trading at 1.1214, which is 0.95% above the previous close.

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US shares closed higher today. The performance of major indices is presented below:

  • DJIA rose 0.43% closing at 17,325.76.
  • Nasdaq Composite finished at 4,763.97, gaining 0.75%.
  • S&P 500 closed at 2,027.22, which is 0.56% higher than the previous close.

The Federal Reserve announced its decision to keep the interest rates steady and provided an estimated two quarter-point hikes during 2016, lower than the initial prediction of four hikes during this year.

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Keeping the range of overnight lending rate at 0.25 – 0.50% Fed mentioned that the US still faced risks from volatile global economy. “A range of recent indicators, including strong job gains, points to additional strengthening of the labor market. Inflation picked up in recent months” written in the Fed policy statement. Moreover, the Fed lowered its GDP growth estimate for 2016 from 2.4% to 2.2%.

Oil prices climbed more than 5% after Fed announcement. WTI Crude closed at 38.46 USD/bbl, jumping 5.83%. Brent Crude gained 4.10% finishing the session at 40.33 USD/bbl.

Qatari Energy Minister Mohammed bin Saleh Al-Sada announced today that the meeting between OPEC and non-OPEC countries will be held on April 17 in Doha despite the fact that Iran recently reported its rejection of participating in discussions on cooperative production freeze.

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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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