Investing.com - Financial Markets Worldwide

NBC Daily Forex : December 19, 2013

ByThe National Bank of Canada
Published 12/22/2013, 04:22 AM
Updated 05/14/2017, 06:45 AM

We were expecting some major news yesterday and we were not disappointed! The Fed announced that it would start tapering its bond purchases starting in January. It will decrease its Treasury and agency mortgage-backed securities purchases by $5 billion each. Bond purchases will be trimmed to $75 billion next month. The FOMC also indicated that it intends to continue withdrawing support as the employment sector bounces back and consumer prices continue to improve. The Federal Reserve also stated that it would be appropriate to maintain the key interest rate at 0.25% even if the unemployment rate drops below 6.5%, and particularly if inflation stays below the target rate.

It took a few long minutes for the market to absorb the news. The reaction was definitely impressive! The S&P 500, the bellwether index in the U.S., jumped further to the news and closed the session up by nearly 2%. Could this news be the flame that will ignite the Santa Claus Rally?

On the currency markets, the FOMC statement resulted in the greenback being up against most of its peers. The DXY, the U.S. dollar index, closed the session up by more than 0.5%.

We are keeping an eye on economic indicators that will be released south of the border today: Initial Jobless Claims and Existing Home Sales. Have a great day! Philippe Shebib

Range of the day: 1.0680-1.0770
Description

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.