Lira and Rand Still Under Pressure Awaiting Fed

Wall Street stocks fell on Wednesday as concerns about the impact of a possible cut in the U.S. Federal Reserve’s monthly bond-buying program kept investors cautious.

Global equity markets got an early boost from Turkey’s central bank, which stunned investors late Tuesday with a dramatic rate hike designed to defend its crumbling currency. But the euphoria quickly faded as the market’s focus shifted to Fed’s decision, due at 2 p.m. ET.

Ahead of the opening bell on Wall Street, South Africa’s Reserve Bank raised interest rates for the first time in nearly six years, in step with other emerging market economies that have tightened monetary policy to shore up their declining currencies.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza