What you need to know on Friday, September 24:
Market sentiment improved substantially, following news that Chinese real estate giant Evergrande will likely restructure to avoid default. In addition, the local government is willing to provide other support, while a unit of the troubled company has promised to pay interest on time.
The US dollar gave up all post-Fed ground and even fell further against most major rivals. However, the EUR / USD pair remained below its weekly high of 1.1755, as lukewarm European data spooked the bulls.
GBP / USD hit 1.3750 after an aggressive announcement from the Bank of England. The UK central bank left its monetary policy unchanged and the £ 895bn facility program on hold. The MPC voted 9-0 to put rates on hold, but voted 7-2 to lower QE, while the statement noted that some developments strengthen the case for a modest adjustment. Still, lawmakers said uncertainties around the job market persist, but added that an increase in rates would precede a reduction.
The USD / JPY pair jumped to the 110.20 price zone, where it currently stands, amid prevailing risk appetite. US Treasury yields soared to levels last seen in July, with the 10-year yield hitting an intraday high of 1,411% and settling close. Wall Street rallied, with the DJIA adding more than 550 points and the S&P adding about 1.4%.
Commodity-linked currencies rose steadily, following the lead of equities. AUD / USD is trading around 0.7300, while USD / CAD is down to 1.2650.
Gold prices are considerably lower amid the upbeat environment, with the shiny metal currently trading around $ 1,750 a troy ounce. Crude oil prices rose, and the WTI settled at $ 73.10 a barrel.
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