Business & Finance

DAX Climbs Third Day, Yen Holds Near 158 as Markets Await FOMC

By BigGo Finance

European financial markets on Thursday were broadly higher, with the German DAX marking its third consecutive gain and the yen trading near 158 per dollar. The U.S. Federal Open Market Committee’s decision and Fed Chair Jerome Warsh’s upcoming press conference prompted traders to adjust positions.

In currency markets, the dollar‑yen stood at 158.15, 0.33 yen weaker than the previous day’s 3:00 p.m. level. After dipping to 157.65 in the evening Japan time, buying resumed once the 157.42 low appeared as near‑term support. Yen selling and dollar buying intensified amid rising U.S. long‑term rates, pushing the pair to a fresh intraday high of 158.25 just before 1:00 a.m. Market participants noted the Ichimoku cloud upper limit at 158.44 and the 200‑day moving average at 158.54 as potential resistance.

The euro‑dollar traded at 1.1148, a modest gain for the euro. Euro selling early in the session reflected uncertainty over the Middle East, and the pair fell to 1.1113, matching the year‑to‑date low set on the 14th, before rebuying. It reached an intraday high of 1.1153 just before 2:00 a.m. The euro‑yen hovered at 176.30, 0.83 yen weaker, and peaked at 176.40 shortly after 1:30 a.m.

In equities, London’s FTSE 100 rebounded slightly after initial position‑adjustment selling. Utility names such as National Grid and SSE were bought, and energy stocks including BP and Shell rose, while pharmaceutical shares like GSK were sold. Frankfurt’s DAX closed at 25,704.02, up 113.25 points, driven by gains in Asian markets but capped by selling ahead of the FOMC and the European Central Bank’s policy meeting the next day. Notable gains were seen in Deutsche Bank (+3.97%), Siemens Energy (+3.64%) and Siemens Healthineers (+1.72%).

European bond markets saw UK government yields fall and German yields rise. Germany’s November consumer confidence index fell to –30.8 from –30.6. In North America, the Bank of Canada raised its policy rate by 0.25 percentage points to 2.50%, the first hike since July 2023, citing inflation risks from the Middle East.

Market participants remain focused on the FOMC announcement and Warsh’s press conference, with position‑adjustment moves dominating. The direction of U.S. long‑term rates is expected to continue influencing the dollar‑yen. European stocks benefited from improved risk appetite and inflows into utilities and energy, but aggressive buying is restrained by the upcoming policy decisions of the FOMC and ECB.

In the currency market, the dollar‑yen remains top‑heavy in the lower 158 range, with the 158.44‑158.54 band as near‑term resistance. The euro‑dollar trades near its year‑to‑date low, and the ECB’s policy message could shape market direction.