S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketThe US Dollar’s response to the recent Fed meeting was muted, with EUR/USD approaching 1.20. The Fed’s signals suggest a key interest rate cut in March is unlikely, as growth is now described as ‘solid.’ However, the market’s focus on political questions during the press conference indicates a potential shift in perception regarding the Fed’s independence, report Commerzbank analysts Volkmar Baur and Michael Pfister.
Fed meeting impacts US Dollar
“Overall, however, the market seemed to focus more on the somewhat hawkish leaning comments and adjustments. Expectations of further interest rate cuts were adjusted slightly downwards, but in such a marginal way that it is unlikely to move the currency.”
“The fact that politics seems to be slowly creeping into the Fed, or at least that this is how it is perceived by the market, was also evident in Christopher Waller’s vote in favour of a further cut in the key interest rate.”
“Ultimately, even if the Fed can actually continue to pursue an independent monetary policy, this can become a problem. If the market no longer believes it, the US dollar will suffer.”
