Morning Update – 17/03/16 – by Arjun Lakhanpal

March 17, 2016 by

Morning all.. Quite a session after the Fed left rates unchanged and in fact came across surprisingly dovish. US stocks liked it with the S&P closing up 0.56% but the dollar didn’t and it fell sharply. However Asian stocks were mixed with the Nikkei down 0.22% and some suggesting the steep fall in Toshiba the culprit. HK and China both up 1%. This Toshiba probe is also weighing on USDJPY and coupled with lower US yields and the dovish Fed we have broken below 112.00. AUD and Kiwi exploded higher on stronger data and the Fed. Kiwi GDP much better than expected and Aussie Unemployment stronger. The Fed not only sounded concerned by global issues but removed 2 hikes from their “Dot plot” for this year which was one more than expected.. The lower dollar is helping commodities and oil with WTI up 2% again this morning.. The latest statement on risks from the Fed suggests officials are inclined to wait until they have a clearer picture of the economic outlook before moving. That makes it unlikely the Fed would raise rates at its April meeting, though Ms. Yellen said the central bank could move then if it chooses. Some even suggesting they want a lower dollar. This morning we get Swedish Unemployment data, Norway rate decision (cut expected) and EU CPI data. We also have the BoE rate decision and minutes. Good luck..