US stocks move off highs; USD recovers

US equity indices opened near two-week highs on Thursday after yesterday’s FOMC decision to leave rates unchanged but near the end of the session are moving off highs, trimming gains. Also the US dollar and gold reversed.

The Dow Jones index that climbed earlier to 18,440 is now at 18,370 still up (+0.48%) but away from the highs and moving now to the downside. Despite the retreat, the index is still 200 points above the level it had before the release of the Fed’s statement.

The US central bank left interest rate unchanged and said that the case for a rate hike has strengthened but decided to wait for more information. Equity price worldwide rose and the US dollar weakened.  Today European markets ended with sharp gains. The FTSE 100 rose 1.12%, the CAC 40 2.27% and the DAX 2.28%.

In the forex market the US dollar moved in negative territory most of the day, extending yesterday’s losses but during the second half of the American session reversed and recovered, trimming losses. The worst performer on Thursday continued to be the Japanese yen, weakened by the risk appetite environment.

The US Dollar Index bottomed at 94.90 (2-week low) but it rebounded rising back above 95.00. It was at 95.30, marginally below yesterday’s closing price.