Fundamental Analysis – 09/10/2015

Good Morning,

US initial jobless claims dropped to 263K last week. Canada New Housing Price Index (MoM) registered at 0.3% above expectations (0.1%) in September. US stocks pushed higher and shorter-term Treasuries pared early losses after the minutes of the Federal Reserve’s September policy meeting played to expectations that US interest rates would not be raised this year. USDCAD fell further and approached 2-month lows following the release of the FOMC minutes, which showed Fed officials chose to wait before raising rates as they remain worried about low inflation. Central Banks led the way this Thursday, resulting in a continued decline in the greenback towards fresh weekly lows against most of its rivals. The Standard & Poor's 500 index was up 0.88% and broke out above the key 2000 mark Wall Street had been hoping for. The Dow Jones Industrial Average closed with gains for a fifth consecutive session, its longest winning streak this year. USDCHF is trading at 0.9662 while GBPUSD is trading at 1.5355.

ECB minutes posed no threat to EURUSD but given the central bank's dovish tone we were surprised by the single currency's strength because European policymakers expressed concerns about the economy and inflation. EURUSD is trading at 1.1282 while EURGBP is trading at 0.7345.

Bank of Japan Governor Haruhiko Kuroda said on Thursday the slowdown in emerging economies was already hurting Japan's exports, though he stressed that there was no change to his view the economy was set to continue a moderate recovery. USDJPY is trading at 119.92 while AUDUSD is trading at 0.7262.

Daily Performances (01.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.