15 Nov 2013
European Open: Fed fuels risk on trading
FXstreet.com (London) - Markets overnight saw a big risk-on session thanks to Janet Yellen’s dovish testimony before the US senate.
Speaking yesterday at her confirmation hearing before the Senate committee on Banking, Housing, and Urban Affairs, Yellen gave all the right noises to anybody hoping for continued easy money policies and a cautious approach to any easing of the Fed’s USD85bn-a-month asset purchase programme.
Asian markets carried on there US equities markets left off, with strong rallies on the prospect of continued liquidity support.
The Nikkei gained 1.95 percent, the Hang Seng gained 1.55 percent and the ASX gained 0.9 percent.
The yen slid from JPY99.10 to break above the 100 level at JPY100.19 on declining demand for yen safety.
In Europe today, the final reading of the September Eurozone CPI will be in focussed following the initial reading’s big drop on expectations. Though much of the miss from the 2.7 percent expected to 2.2 percent was attributed to falling petrol prices and Spanish vat hikes, of interest will be price activity in the core Eurozone.
EUR/USD is trading flat at USD1.3455 on choppy trading at the end of a week of hard-fought euro gains.
Speaking yesterday at her confirmation hearing before the Senate committee on Banking, Housing, and Urban Affairs, Yellen gave all the right noises to anybody hoping for continued easy money policies and a cautious approach to any easing of the Fed’s USD85bn-a-month asset purchase programme.
Asian markets carried on there US equities markets left off, with strong rallies on the prospect of continued liquidity support.
The Nikkei gained 1.95 percent, the Hang Seng gained 1.55 percent and the ASX gained 0.9 percent.
The yen slid from JPY99.10 to break above the 100 level at JPY100.19 on declining demand for yen safety.
In Europe today, the final reading of the September Eurozone CPI will be in focussed following the initial reading’s big drop on expectations. Though much of the miss from the 2.7 percent expected to 2.2 percent was attributed to falling petrol prices and Spanish vat hikes, of interest will be price activity in the core Eurozone.
EUR/USD is trading flat at USD1.3455 on choppy trading at the end of a week of hard-fought euro gains.