Spreadex Market Update

Markets open higher than expected



Traders have woken up this morning to see markets opening higher than expected after strong financial data coming from Asia.

This is mainly in the form of the Bank of Japan boosting asset purchases, and this combined with the Federal Reserve’s recent stimulus measures is providing the bulls with ammo.

Japan’s Nikkei 225 Stock Average rose 1.6% and the broader Topix index gained 1.2% as the BOJ increased their asset-purchase fund from 45 Trillion Yen to 55 trillion yen.

As central banks around the world pull together to provide stimulus and growth to the markets, currencies are at risk of de-valuing and as a result of this gold has climbed to its highest level in more than 6 months.

At 12:15am GMT FOMC member Jeffrey Lacker is due to deliver a speech titled “Maximum Employment and Monetary Policy” in New York.

FOMC members will vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

If the results of this meeting are more Hawkish than expected it will be good for currency’s.

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