Investors continue to digest results of FED meeting

The trading session finished with a small loss in the American stock market on Thursday, having decreased for the second day in a raw. Dow Jones decreased for 0,47%% and has been traded on the level of 15545,75 points, S&P500 fell to level of 1756,54 points losing 0,36%%, and Nasdaq Composite lost 0,27%% being at the end of the day at the level of 3919,17 points. Main influencing factor has been strong data on the Chicago index of business activity, as for time now all statistics is perceived by investors through a prism of prospects of the program of quantitative easing.

Yesterday investors have been waiting for the results of FED meeting and now continue to digest results of it, trying to find in the text anything which can outline when QE-3 program will start to be reduced.  A number of large western banks already changed their forecasts in this respect. For example, Credit Suisse considers that the volume of QE3 will be reduced not in March, but already in January 2014 by $10 billion, and it is worth waiting for full turning by September, 2014.

American news do not really bother investors in Europe. Yesterday we could observe quite optimistic moods in the European platforms. The German DAX index finished the trading session at the maximum historical level on 9033,9 points, having shown an annual gain of 18,67%%.

However it should be stressed that the situation in the currency market and in particular a situation with euro strongly changed since the beginning of week. EUR/USD continued to suffer from correction of positions in connection with a difference of views of the national Central Banks on a further course of monetary policy. Macroeconomic statistical data which turned to be quite weak – only increased uncertainty in relation to Euro.

Undoubtedly, statements of Mr. Novotna also affected positions of Euro. Earlier during a week he already managed to excite the markets with the statement that decrease in a rate on deposits is excluded, and then it gave support to Euro. This time he made a hint that the European Central Bank can again start to use LTRO operations in order to maintain liquidity at sufficient level. The regulator really should have a certain plan of action on the future as the current economic indicators show that process of recovery proceeds unstably.

As a result, pair from level of opening on1,3733 came down to a minimum of 1,3583, having finished the day around 1,36. This morning EUR/USD pair continued it’s downward movement and is traded on a level of 1,35610.

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