By FX Empire.com
Optimism continued to dominate markets on Wednesday after the ADP employment change report showed U.S. private employers added 110,000 jobs in October, above median estimates of 100,000 added jobs, and compared with the prior revised 116,000 added jobs back in September, which boosted confidence in markets and supported demand for higher yielding assets, which sent the U.S. dollar lower against major currencies.
Moreover, the Federal Open Market Committee left the benchmark interest rates unchanged at a record low between 0.00% and 0.25%, and signaled that the current monetary policy will remain unchanged as well. The FOMC decision came in line with estimates.
The U.S. dollar rebounded to the downside against a basket of major currencies on Wednesday, where the U.S. dollar index was trading at 77.07, compared with the opening level at 77.21. The Euro gained back against the Dollar, where the EUR/USD pair traded at $1.3721, compared with the opening level at $1.3654, the British Pound was little changed against the Dollar, where the GBP/USD pair traded around $1.5931, compared with the opening level at $1.5939, and the U.S. dollar weakened against the Japanese Yen, where the USD/JPY pair was trading around 78.12, compared with the opening level at 78.31.
Stocks in the United States gained by Midday trading on Wednesday, as the Dow Jones Industrial Average was higher by nearly 0.85% to trade around 11,757, while the S&P 500 index was up by nearly 0.80% to trade around 1228. European stock indexes closed Wednesday’s session higher, where FTSE 100 was higher by nearly 1.15% to close at 5484 and the DAX was up by nearly 2.25% to close around 5965.
Gold prices were higher on Wednesday to trade now around $1724 an ounce and crude oil prices also gained to trade around $92 a barrel.
