FOREX REVIEW

FOREX REVIEW

Comments from ECB President Mario Draghi yesterday instilled confidence in markets that the Central Bank will act to reassure investors. These remarks helped offset concerns of a global slowdown that is affecting both developed and emerging markets alike. Equities and risk-assets immediately reacted to the upside with sovereign yields tumbling and the Euro soaring higher. Equities managed to pare the week's losses as the Spanish IBEX climbed 6.06% followed by a 5.62% rally in the Italian MIB. The Euro Stoxx 50 Index was also stronger, rising 4.26%. EURUSD increased over 120 pips before pulling back below the 1.2300 to 1.2288 while GBPUSD is marginally lower, ticking down -0.04% to 1.5679.

Optimism following Mario Draghi's hollow statement sent markets higher around the world, countering the concerns of declining industrial profits in China and deflation anxiety from the Bank of Japan. Governor Shirakawa has been quick to remind markets of his desire to stimulate inflation and fight yen strength while the Chinese are contemplating the possibility of a cut in the benchmark corporate tax rate to stimulate more investment and growth. Equity indices rallied with the Hang Seng Index adding 1.95% followed by gains in other major indices. The Nikkei and Australian ASX rose 1.40% and 0.91% respectively. USDJPY is trading at 78.220 while AUDUSD has strengthened 0.21% to 1.0419.

Major U.S. indices and commodities moved higher yesterday as speculation of Central Bankers willingness to act lifted broader sentiment and sent risk-assets soaring higher. Even after several weak earnings announcements, equity indices moved higher led by the 1.67% gain in the Dow Jones. Other indices reversed the prior day's losses with the S&P 500 rising 1.65% and the Nasdaq ticking 1.37% higher. The dollar index has fallen as peers including the Euro outperformed dramatically yesterday. DXY is trading down -0.03% to 82.787. Commodities which showed upside momentum across classes have since pulled back slightly with Gold trading at $1619.50 while WTI crude trades right below the $90 handle at $89.63 per barrel. The main event looking forward today is the GDP release at 13:30 GMT which is expected to show quarter-over-quarter declines.

Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. CONNECTED Visit Us www.deryworldscorp.web.id