The dollar mostly gained ground as the FED did not change any expectations regarding rate hikes in 2017. With tomorrow’s NFP in the picture, the market is expected to be volatile going into that event. The FED reiterated that economic growth is likely to continue. This signaled that the FED is very likely going to stick to its course of raising rates gradually.
• GBP was under pressure at the start of European trading yesterday as an article indicated that the EU could demand the UK a ‘separation charge’ of up to €100B. The report followed other recent signals that the UK and the EMU might be heading for very tough Brexit-negotiations. EUR/GBP touched an intraday top of 0.8476. GBPUSD spiked to the 1.2885 area.
• EURUSD edged slightly lower and below the 1.09 level on the somewhat dull FOMC statement. ECB’s Draghi is expected to speak today.
• Stocks ended the day a bit lower with Nasdaq pulled down by mediocre Apple earnings. Asian Stocks were mixed as well, as China data did not boost confidence in the country’s economy.
• In commodities, oil prices slipped on Thursday after a smaller-than-expected decline in U.S. inventories last week. OIL pulled back 0.25 % to $47.69 a barrel. On Wednesday, it touched its lowest level in over five weeks before closing higher.
• Gold is trading at $1233, its lowest since 21 March.
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