DAX Record High, FOMC As Expected

DAX Record High, FOMC As Expected

The euro (EUR) is rising against most of its major counterparts, following the Federal Open Market Committee (FOMC) decisions and the eurozone banking union deal. The Fed announced 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. The finance ministers from EU's 27 countries agreed to provide to the European Central Bank (ECB) the authority to directly oversee the eurozone's biggest banks and interfere in smaller banks when needed.

The US 500 (SPI) and US Tech (NDQ) are still trading near yearly highs 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 plunged against the US dollar (USD) yesterday, following the Crude Oil Inventories release. This week the Organization of the Petroleum Exporting Countries (OPEC) will meet over its output and to choose a new secretary-general.

The Australian dollar (AUD) recorded a new high at 1.0585 versus the US dollar (USD) but soon retraced lower. However, the trend remains bullish.