Crude oil prices hit an 8.5 month low and gold lowered in price as well. Silver also followed the downturn. The FMOC meeting results were anticipated but they turned out to be a disappointment. Fed did not issue third quantitative easing under the program ‘Operation Twist’. Then during the night China announced weaker manufacturing data to compound the problems of the bulls. Not to forget the shadow of the EU debt crisis; this is likely to spot the media attention again in a short while.
Earlier Euro had gained against Dollar in anticipation of another round of quantitative easing. This was however ruled out after the meeting’s result which is likely to avoid the greenback from falling as much in relative value to the euro if the Operation Twist would’ve gone ahead.