In line with market expectation, the Fed left rates unchanged last night after its two-day policy meeting. In their statement, the Fed said it remains on track to gradually raise short-term interest rates this year and also pointed to improvements in the economy. Unfortunately, no clear timeline was mentioned. As a result the U.S. dollar failed to hold on to gains and declined against the Euro and Yen falling below 113.00 against the Yen.
The British Pound managed to trade as high as 1.2675 after a good PMI reading for January showed manufacturing output grew at its fastest pace since May 2014. It also gained after the House of Commons voted to allow the prime minister to start Brexit talks with the European Union.
Tonight the Bank of England’s monetary policy meeting is expected to keep interest rates on hold.
In equities, the Dow was slightly higher at 19890.94, the S&P 500 marginally higher 2279.55 while the Nasdaq rose to 5642.65. The S&P rise halted a four day slide in the index.
In energy, WTI rose 2.03% or $1.07 to $53.88 a barrel on the New York Mercantile Exchange—the highest settlement price since Jan. 6. Brent, the global benchmark, rose 2.2% or $1.22 to $56.80 on London’s ICE Futures Exchange.
Prices rose amid signs that major oil exporters are cutting production and federal data showed that U.S. crude output declined by 46,000 barrel-a-day as reported by the U.S. Energy Information Administration.
Chart of the Day
