FX.co ★ Fundamental Analysis for March 14, 2012

The Federal Reserve left the interest rate unchanged, as expected, and confirmed its intention not to alter it until 2014 without specifying a precise date. The move is in line with expectations, as well as the continuity of the so-called operation Twist.
However, there are other thoughts that can be taken as useful from the FOMC statement. The announcement refers to a temporary increase in inflation arising from oil prices, but dismisses that this will be maintained over time. This suggests that the Feds see the low oil prices in future, which would result in a further devaluation of currencies linked to it such as the Canadian dollar and Mexican peso.
There were no other important news in the Feds statement, and currency movements at the time of its publication gave strength to the dollar.
On the other hand, Wall Street shines again as in its best days. U.S. stock indexes fly, stocks beat records, and their prices are top financial newspapers, which echo the good climate that exists in the United States.
The Dow Jones on Tuesday had his best day in months, and closed at 13,177 points, while the Nasdaq closed at 3,039.88 points, gaining 1.85%. It seemed hardly possible a few months ago.
This strain produced in the global financial climate also leads to gold decline, which was used as a shelter asset for a long time. So in the final hours this brought to 1,650 dollars per ounce, taking the Aussie, which also broke, for the second time in recent days, the support of 1.05.
The data to follow during the American session on Wednesday is the inventory of U.S. oil, scheduled for 10:30 Eastern.