GER 30 (DAX) Record High, Focus On FOMC

GER 30 (DAX) Record High, Focus On FOMC

The euro (EUR) rose higher against most of its major counterparts, ahead of the Federal Open Market Committee (FOMC) decisions. The Fed will conclude a two-day meeting and is expected to announce the purchase of $45 billion longer-dated Treasuries per month, beginning in January to replace the current Operation Twist program, which expires at the end of this month. Under the Operation Twist program, the Fed sells shorter-dated US government debt and buys longer-dated Treasuries to extend the duration of its balance sheet. As this expansion is expected, a different outcome could cause sizeable movements in the market.

The US 500 (SPI) and US Tech (NDQ) both recorded yearly highs yesterday and their performance has captured investors’ attention worldwide. Equity indices are traditionally strong in December and this can also be confirmed by the steady appreciation of the UK 100 (FTS) and the GER 30 (DAX).

OIL rebounded against the US dollar (USD) yesterday, after falling for five straight sessions, ahead of this week’s Organization of the Petroleum Exporting Countries (OPEC) meeting over its output and to choose a new secretary-general.

The British pound (GBP) advanced versus the US dollar (USD), rising from 1.6069 to 1.6116, while the Australian dollar (AUD) recorded a new high at 1.0540 benefiting from heightened risk appetite.