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December 19, 2013

Global News December 19, 2013

Posted by: ffs @ 07:02 GMT Category: Daily Forex,Forex Market News

⇒ U.S. stocks rocketed higher on Wednesday, with the Dow industrials and SandP 500 both scoring record closes and their best gains since Oct. 10, as investors interpreted a Federal Reserve decision to taper stimulus measures as a sign that the economy is strengthening. The Dow surged 292.71 points, or 1.8%, to close at 16,167.97, topping its prior record close on Nov. 27. The SandP 500 climbed 29.65 points, or 1.7%, to end at 1,810.65, finishing above its prior record close on Dec. 9. The NASDAQ Composite jumped 46.38 points, or 1.2%, to finish at 4,070.06 – Source: Marketwatch

⇒ Asian share markets rallied on Thursday as a Federal Reserve commitment to low rates offset a long-dreaded decision to taper stimulus, sending Wall Street to record heights and the dollar galloping above 104.00 yen for the first time since 2008. Stocks in Sydney and Seoul both gained 0.8 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent – Source: Reuters

⇒ The Federal Reserve on Wednesday embarked on the risky task of winding down the era of easy money, saying the U.S. economy was finally strong enough for it to start scaling down its massive bond-buying stimulus. The central bank modestly trimmed the pace of its monthly asset purchases, by $10 billion to $75 billion, and sought to temper the long-awaited move by suggesting its key interest rate would stay at rock bottom even longer than previously promised – Source: Reuters

⇒ Royal Bank of Scotland Group Plc’s markets division banned employees from using multidealer chat rooms, joining rivals in curbing the forums amid probes, according to a person with direct knowledge of the plan. The world’s biggest banks are reining in chat rooms as regulators examine the messages for evidence traders manipulated currencies or benchmark rates. JPMorgan Chase and Co. (JPM) will ban traders from using multidealer chat rooms, a person briefed on the matter said this week. Deutsche Bank AG (DBK) said it will widen a prohibition on such exchanges to include its entire investment-bank unit and transaction-banking business next year – Source: Bloomberg

⇒ The U.S. dollar surged above 104 yen Wednesday after the Federal Reserve said it would slow the rate of its monetary stimulus by $10 billion starting in January. The dollar jumped to ¥104.30, its highest level against the yen in 2013, from ¥102.67 late Tuesday. The dollar-yen pair, which is the most sensitive to fluctuations in yield differentials, could end the year closer to ¥105, said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc – Source: Marketwatch

⇒ The pound jumped the most in six weeks against the euro after U.K. unemployment fell to the lowest since April 2009, fueling speculation the central bank will raise interest rates sooner than it intends. Sterling strengthened at least 0.5 percent versus all its 16 major counterparts even as minutes of the Bank of England’s December meeting showed policy makers were concerned further appreciation in the currency would hamper the economic recovery. The U.K. currency advanced 0.8 percent to 83.99 pence per euro at 4:32 p.m. London time, the biggest gain since Nov. 7. It depreciated to 84.67 pence yesterday, the weakest level since Nov. 4. The pound climbed 0.8 percent to $1.6393, ending a five-day losing streak that saw it decline 1.1 percent – Source: Bloomberg

⇒ The Australian dollar fell against most of their major peers amid speculation the U.S. Federal Reserve will continue tapering stimulus that has buoyed asset prices around the world. The Aussie slid for a fourth day, its longest losing streak this month, after the Fed yesterday decided to trim the pace of its monthly bond purchases by $10 billion to $75 billion. Volatility in the currency fell to the lowest in almost a month. The Australian dollar fell 0.4 percent to 88.30 U.S. cents as of 2:46 p.m. in Sydney from yesterday, when it touched 88.21, the lowest since August 2010. One-month implied volatility fell as much as 14 1/2 basis points, or 0.145 percentage point, to 8.99 percent, the least since Nov. 21 – Source: Bloomberg

⇒ U.S. housing starts surged to their highest in nearly six years in November, a sign of strength in the economy that underscores the Federal Reserve’s decision to start cutting back its monthly bond purchases. The Commerce Department said on Wednesday housing starts jumped 22.7 percent, the biggest increase since January 1990, to a seasonally adjusted annual rate of 1.09 million units. That was the highest level since February 2008 – Source: Reuters

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