MARKET OVERVIEW AT LONDON CLOSE
The news release has added further support to growing speculation that the US Federal Reserve will be implementing a tapering to its quantitative easing (QE) policy.
S&P also stated that the end of QE would be welcome of evidence of improvement [In the US economy].
Immediately following the releases, the S&P 500 pushed higher, for which is currently trading at 1644.81, +0.09% up from its previous close level, also the Dow Jones Industrial Average is trading higher at 15270.55 +0.15% up from its previous close level.
US dollar pairs have reversed earlier support and are currently trading in a net-negative trend against the majority of its major counterparts.
USDCHF 0.9358 -0.34%, AUDUSD 0.9470 +0.34%, NZDUSD 0.7915 +0.29%, GBPUSD 1.5564 +0.24%, EURUSD 1.3228 +0.22% and USDCAD 1.0179 -0.08%.
Also, FOMC member Bullard, who gave an address during the US open, stated that as the US debt and deficit situation is improving, which is an indication of an improved US outlook.
Canadian pairs have pushed into a net-positive direction against the majority of its major counterparts following Monday’s release of better-than-expected housing starts, which came in at 200.20k, outperforming market expectations of 178k, up markedly from its previous level of 175.90k (MoM).
Housing starts measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
AUDCAD 0.9640 +0.25%, NZDCAD 0.8055 +0.19%, GBPCAD 1.5844 +0.16%, EURCAD 1.3465 +0.13%, CADJPY 97.03 +0.08% and USDCAD 1.0179 -0.08%.
In commodity markets, WTI for July delivery was at $95.71 a barrel. Brent for July settlement slid 42 cents to $104.14 a barrel.
Biggest gainers at the London close; USDCHF 0.9358 -0.34%, AUDUSD 0.9470 +0.34%, CHFJPY 105.54 +0.33%, AUDJPY 93.55 +0.33%, NZDUSD 0.7915 +0.29%, NZDJPY 78.18 +0.28%, CADCHF 0.9192 -0.25%, AUDCAD 0.9640 +0.25%, GBPUSD 1.5564 +0.24% and GBPJPY 153.75 +0.23%.
Biggest losers at the London close; USDCHF 0.9358 -0.34%, CADCHF 0.9192 -0.25%, EURAUD 1.3966 -0.12%, EURCHF 1.2380 -0.12%, GBPCHF 1.4567 -0.10%, GBPAUD 1.6433 -0.09% and USDCAD 1.0179 -0.08%.
Story provided by StockMarketWire.com