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EWH Currency Commentary: Dollar Rallies Post-Fed (SUMRX):

http://etfdb.com/etfdb-category/europe-equities/
http://etfdb.com/etfdb-category/asia-pacific-equities/
http://etfdb.com/etfdb-category/china-equities/

1. The Dollar Index pushed above the 89 level following yesterday's FOMC decision. Markets were awaiting the Fed's decision on considerable time. The Fed did leave considerable time language in the statement but in a different area. The FOMC tweaked the 'considerable time' language to 'patience'. At the end of the day the Fed remains data dependent as it has been saying for a few years. Of interest there then was the lower inflation outlook members forecast for 2015. Markets continue to view mid-2015 as the likely time frame for when the Fed is set to raise rates. Economic data this morning was weak as surveys (Markit Services, Philly Fed) continue to disappoint. But it is the Fed statement that continues to dominate headlines today.
2. The euro has tumbled back into the 1.22 area. The rally in the dollar has helped put selling pressure on the single currency. The markets will be paying close attention to an EU Economic Summit that will be held over the next couple of days. Hints of any potential monetary easing will be important. But also markets will be looking at commentary on any potential fiscal reform and on Greece. The latter is of course undergoing an important confidence vote in the government.
3. The pound has rallied off the 1.5550 level this morning to push back to 1.5660. 1.5550 has been setting up as low end support for the recent trading range for sterling. This marks the third time it has been able to bounce off this area in the past two weeks. A better than expected retail sales number has helped provide a boost.
4. The yen is running into resistance at 118. Yen would eventually pullback to 119.30 but is now moving back higher. The recent strengthening in the yen is showing signs of cooling following the recent volatility. 118 will set up as a key level of resistance moving forward.
5. The Russian ruble is settling around the 60 level and remains a key focus for markets. This morning President Putin held a four hour press conference discussing the situation in Russia. The ruble whipped around in the 57-63 area during the speech which was relatively aggressive but nothing outside of expectations for Putin. The Bank of Russia is now announcing that it will recapitalize systemcially important banks and hold talks with brokers.
6. The Swiss franc is also in focus as the Swiss National Bank moved rates into negative territory. This has led to the franc weakening to 0.97 against the dollar. It would appear the SNB is preparing for a EU QE as it attempts to maintain a 1.20 peg against the euro. That cross is currently trading at 1.2037 (FOREX, BONDX)

VGK = Europe ETF
EWG = Germany Index Fund
EWU = UK Index Fund
EWP = Spain Index Fund
EWI = Italy Index Fund
EWA = Australia Index Fund
EWJ = Japan Index Fund
EWH = HK Index Fund
EWT = Taiwan Index Fund
EWY = S Korea Index Fund