• Confusion in Japan
  • Oil falls again
  • Ukraine defaults on bonds
  • Spain elections this weekend

There is very little moving the markets today after the run up to and fallout of the Fed rate hike.  Next week US GDP will be announced, and barring any major surprises the USD will retain the strength it gained this week after the Fed announcement.

Another central bank that caused some market movement today is the Bank of Japan. The BOJ announced some new easing measures about which the markets were very confused.  It initially appeared to be a very good package of stimulus, but analysts quickly concluded there were very little real changes or benefits to be had. The equities markets subsequently lost almost 4% from the day’s highs.

To round out the week there have been a few other things of note globally.  Oil is below $35 a barrel again after a short-lived rally in the middle of the week.  Ukraine is playing a game of chicken with Russia by defaulting on a $3 billion bond payment.  Lastly, Spain general elections are on Sunday and there is no clear party to win a majority.  There is a good chance that a coalition will be formed between the current government and the Ciudadanos party.  The (less) radical Podemos party has been rallying recently, but is unlikely to gain a majority.

EURUSD: Euro is down slightly on continued Fed rate hike fallout.

GBPUSD: The pound down slightly but trading close to flat.

AUDUSD: Aussie dollar strengthened slightly this morning.

USDCAD: Canadian dollar weakened on USD strength and poor CPI numbers.