Interest Rate Unchanged
Join UFX!
http://bit.ly/1LCq0XV
Wall Street finished lower after the Federal Reserve decided to leave interest rates unchanged. The Dow Jones fell by 0.20%, the S&P 500 by 0.18%, and the NASDAQ lost 0.18% from its value. Amazon shares fell by 0.70%, closing at $714.26.
The U.S. Dollar traded lower against most major currencies after the Federal Reserve held interest rates steady, as expected, and lowered its economic growth forecasts for this year and next, suggesting it would be less aggressive in tightening policy after 2016. The Federal Funds Rate came out unchanged at 0.50%. Today, the Unemployment Claims is expected at 267K vs 264K previously.
Gold rose, closing at $1,291 an ounce. Crude Oil fell, closing at $47.41 a barrel after the Energy Information Administration defied expectations with a lower than expected stockpile draw last week.
The euro traded higher versus the dollar, supported by a weakened greenback following the FOMC statement on Wednesday. Technically, according to the 4-hour chart,the pair is trading above the 20-day Moving Average with a positive RSI indicator just above 50. Holding these conditions should take the pair towards 1.1350, while dropping below the line may lead to a retracement to around 1.1150.
The Pound finished higher versus the dollar after a better than expected Unemployment Rate that came out at 5.0% vs %5.1% forecast. Technically, according to the 1-hour chart, the pairis holding near the upper band of the Bollinger Bands. Breaching the upper band may lead to a rise towards 1.4300, while a failure could take it back to lower areas, reaching the lower band at 1.4100 soon.