EUR/USD flat after Fed minutes provide clues of likely rate hike

EUR/USD was relatively unchanged on Wednesday after the minutes from the Federal Open Market Committee's October meeting showed that the majority of the committee's participants appear ready to raise interest rates when it meets again in mid-December.The currency pair traded in a tight range between 1.0617 and 1.0692 before settling at 1.0659, up 0.0016 or 0.15% on the session. The euro closed under 1.085 against the dollar for the eighth consecutive session in spite of halting a three session losing streak. Over the last month of trading, the euro has fallen more than 6% against its American counterpart as the pair steadily moves toward parity.EUR/USD likely gained support at 1.0519, the low from April 13 and was met with resistance at 1.1496, the high from Oct. 15.As expected, the FOMC held its benchmark Federal Funds Rate at a near-zero level at both of its meetings this fall following China's unexpected decision to devalue the yuan in late-August. At a critical meeting in September, the FOMC voted 9-1 to hold the rate between zero and 0.25%, amid significant concerns abroad. Last month, though, the FOMC noted that nearly all of its participants were in agreement that the global financial risks had diminished over the prior few weeks, the minutes showed. Investors have been awaiting a move for months since the Fed ended a comprehensive Quantitative Easing program last fall aimed at jumpstarting the U.S. economy. The rate has remained near zero since December, 2008 at the height of the Financial Crisis.Before the minutes were released, a trio of regional bankers sent further indications that a rate hike could be imminent. Appearing on a panel alongside New York Fed president William Dudley and Cleveland Fed president Loretta Mester, Atlanta Fed president Dennis Lockhart noted that the economy has improved enough for the Fed to strongly consider a rate hike in December."I am comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions," Lockhart said at the Clearing House Payments System Risk Symposium in New York. "I believe it will soon be appropriate to begin a new policy phase."Dudley, meanwhile, noted that he does not expect to see any unpredictable market reactions when the Fed eventually decides to normalize policy since the potential move has been so well-documented in recent weeks. The New York Fed has a number of tools at its disposal to help adjust the Fed Funds Rate once the decision is made.The CME Group's (O:CME) Fed Watch increased the probability of a December rate hike by eight points to 72% on Wednesday, before it fell back slightly to 68% at the close of trading.The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, reached a seven-month high of 99.96, before closing on Wednesday at 96.66. The index has not eclipsed 100 since mid-March.

Keurig shares surge 20% after per share earnings fall less than expected

Shares in Keurig Green Mountain Inc (O:GMCR) surged as much as 20% in after-hours trading in spite of sharp revenue declines, as the prominent coffeemaker's adjusted earnings decreased less than expected over its fourth quarter of Fiscal Year 2015.Keurig has seen nearly two-thirds of its market cap disappear over the last 12 months, amid disappointing sales among its single-serve pod makers and accessories. The subdued growth was reflected in the fourth quarter, as Keurig's revenue excluding currency translation dipped by 11% to $1.04 billion. At the same time, sales in the company's single-serve pods slumped 9% to $861.2 million.As a result, Keurig reported fourth quarter earnings of $94.6 million or 0.61 per share, down considerably from net profits of $141.1 million or 0.86 per share last year during the same quarter. Excluding restructuring costs, the company finished with adjusted per share profits of 0.85, above projections between 0.70 and 0.75."Our results for the quarter and the year reflect the competitive and dynamic marketplace in which we operate as well as the steps we are taking to position our Company for longer-term growth and value creation," said Brian Kelley, Keurig's President and CEO. "I'm particularly pleased with the benefits realized from our cost reduction efforts as well as our strong cash generation, both of which exceeded expectations in the fourth quarter. While we expect marketplace conditions will remain challenging in the near term, we have a stronger product line-up and price positioning as we enter the new holiday season."Keurig hopes to receive a boost from Wednesday's launch of two cocktail mixers for its new cold delivery system. In addition, Keurig announced that its Board of Directors authorized an increase of its annual dividend to 1.30 per share, effective in February."Our priorities for 2016 are to reinvigorate our hot system and continue the disciplined rollout of our Kold system," Kelley added. "We remain confident that our investments in the business and our multi-year productivity program will deliver long-term value to shareholders. Today's announcement of the Board's authorization of a 13% increase in our dividend underscores our confidence in our future prospects and continues our track record of delivering strong cash returns to our shareholders."Shares in Keurig surged 7.07 or 17.46% to 47.57 in after-hours trading.