From Marc Chandler at Bannockburn Global Forex:
Overview: The US dollar has come back bid after losing ground against most currencies as the markets reacted to the FOMC decision and press conference. The Antipodeans and Scandis have been tagged the hardest, illustrating the risk-off mood, and arguably the weakening growth prospects. Countries that peg their currencies to the dollar have hiked rates, as has the Philippines and Taiwan. The Swiss National Bank and Norway have also lifted policy rates by 50 bp and 25 bp as expected. The ECB and BOE’s decisions are due shortly. Yesterday’s sell-off in US equites and the continued sell-off in electronic trading casts a pall on global markets today. The Hang Seng, Kospi, and Indian markets fell more than 1%. Europe’s Stoxx 600 is off 1.2%, and if sustained, would be the biggest loss since the end of September. European bond markets are mixed with the peripheral premiums widening against the core. UK 10-year Gilt yield is off five basis points ahead of the BOE meeting. The 10-eyar US Treasury yield is firm, slightly above 3.48%.
The stronger dollar has seen gold tumbled nearly $30 to a six-day low near $1774. It had reached six-month high near $1824.50 on Tuesday. January WTI, which tested $70 a barrel at the start of the week reached $77.75 yesterday and is consolidating at the upper end of yesterday’s range today. US natgas is rebounding 1% today after falling a7.3% yesterday. Europe’s natgas benchmark is 2.1% higher today. It fell 3.8% yesterday. Iron ore snapped a three-day drop and recouped most of those losses with a nearly 2.5% gain today. March copper is off 1.5%. It had rallied nearly 2% over the past two sessions. March wheat is about 0.5% firmer after falling about 0.75% in the past two days....
....MUCH MORE
