Today’s focus on SNB, BoE and ECB’s Interest Rates decision! What to expect?

FXPrimus has summarized the important market indicators of the day.

DOLLAR plummeted against all pairs following a widely expected rate hike as concerns around inflation weighed in.

Momentum was strong with Dollar losing nearly 70-80 pips versus the majors while the pressure continues.

With FOMC’s decision behind us, focal point in today’s session are SNB, BoE and ECB’s rates decision, where a no-change is expected.

EURUSD – EURO surges back above $1.18 following widely expected Fed’s hike. EURO reversed its course after breaking below the 50 DMA on Tuesday amid Fed’s decision to raise interest rates by 25 basis points. The pair is trading within a descending channel and has formed a bearish flag which is likely to push price to the lowest end of the channel and towards the 72.30% retracement. Assuming ECB’s non-event decision does not cause an upward momentum, price is likely to go lower.

USDJPY – DOLLAR falls below 113 as FOMC members Kashkari and Evans voted against hike. Dollar plunged against Yen despite Fed’s hawkish projections as investors remain worrisome on low inflation; two major members that won’t be voting next year, were against December’s hike as they’re concerned about low inflation. Inflation data are of high importance, released today at 13:30 GMT.
GBPUSD – POUND gains on strong wage data, extents gains on weaker DOLLAR. Cable started seeing some gains early in the session yesterday following a positive wage growth release. The pair surged higher above $1.34, adding to the earlier gains, as Fed’s hike played in. On the charts, a bearish flag seems to have formed, increasing the chances for a move towards $1.36. Market participants are looking forward to today’s Retail Sales release to decide on any further opportunities.

USOIL – OIL declines despite optimistic EIA as Gasoline stocks push prices down. OIL fell over $1.00 per barrel following a positive EIA report after investors sold-off Crude largely due to a build in Gasoline stocks. OIL should have benefited from Forties shutdown too, however, traders remain cautious over increased Gasoline inventories.
XAUUSD – GOLD pops $15 higher as 10Yr Bond Yields suffer great losses following the hike. Spot GOLD raised to $1255/oz yesterday owed to a massive drop in Yields following the 25 basis points hike from Fed Chair Yellen. Gold is likely to continue higher while investors attempt to decipher Fed’s monetary policy model.
US Indexes – DJ surged 80.63% higher, S&P closed almost unchanged.
European Indexes – UK 100 remained almost unchanged, DE 30 depreciated by 0.44%
Asian Indexes – ASX 200 fell 011%, Nikkei -0.28% and Hang Seng trades 0.30% lower.
US Equities – Facebook closed 0.75% higher, BoA plunged 1.64%.