The Fed left rates unchanged, steadying the ship under the new Chairman, who is expected to bring change to the Fed. The Fed Chairman did not release interest rate projections, as the Fed has been doing, while expect many other big changes. Bond yields continue to tumble, despite many projecting a rate rise later this year, which may hint at a policy directional change. Oil fell back below US$75/barrel, as the MOU comes into effect and oil begins to flow to the world. The US Dollar gained ground, with the EUR falling to 1.1460, while the GBP crashed to 1.3200.
The rising reserve continues to dampen enthusiasm for commodity currencies, with the AUD falling to 0.7000, while the NZD dropped to 0.5760. NZ Trade data will be released today and Japanese inflation numbers, will also hit the market. As attention fades from the Middle East, markets will focus on inflation, growth and debt.
