The S&P 500 and Dow rose and then reversed course to end lower after the Federal Reserve on Wednesday announced it was holding benchmark interest rates at current levels and signaled no further rate hikes in 2019.
Prime Minister Theresa May on Wednesday said she planned to ask for a short extension of Britain's plan to exit from the European Union--an effort to avoid a disorderly departure from Europe's trade bloc. "We will now not leave on time with a deal on the 29th of March. This delay is a matter of great personal regret for me," she said during a TV address at 10 Downing Street late Wednesday local time. The British leader had formally requested a three-month extension earlier in the day but voiced her frustration with a Brexit process that has taken about 1,000 days since the late June 2016 referendum that saw U.K. citizens surprisingly vote to abandon the EU. "I am not prepared to delay any Brexit any further than the 30th of June," she said, adding that the public has "had enough" talking about Brexit and wanted to get on with other important matters. The decision to delay Brexit runs the risk of Britain leaving the 27-member EU without a formal trade pact, viewed as a worse-case scenario for domestic and international markets. European Council president, Donald Tusk, has said he would consider a Brexit extension only if May can secure a "positive vote on a withdrawal agreement." That may be a tall order given that last week Parliament rejected May's divorce agreement for the second time. According to reports, May is set to travel to Brussels on Thursday where she will discuss extension options. "I am on your side. It is now time for [Members of Parliament] to decide," May said during her TV address. The British Pound was down against the dollar, with the buck changing hands at $1.3194, down 0.6%, according to FactSet data.
The U.S. dollar trades in negative territory on Wednesday, having dropped to its lowest level since early February as the Federal Reserve reaffirms its dovish policy stance.
The U.S. dollar fell to its lowest level since early February on Wednesday as the Federal Reserve reaffirmed its dovish stance. The central bank downgraded its expectation of interest rate increases to zero for 2019, from two expected hikes before. Although this aligned the Fed's forecast with those of many market participants, it reinforced the idea that a major driver of the dollar's strength last year has petered out. The Fed also downgraded its economic outlook, dropping its gross domestic product forecast to 2.1% for this year, from 2.3% before, and said that the winding down of its balance sheet would end in September. The popular ICE U.S. Dollar Index , which measures the buck against six rivals, turned negative after the Fed update. The gauge was last down 0.5% at 95.947, its lowest level since earlyFebruary, according to FactSet. Market participants are now turning their attention to a news conference with Fed Chairman Jerome Powell scheduled for 2.30 p.m. Eastern.
President Donald Trump on Wednesday, ahead of a trip to Ohio, told reporters on the South Lawn that he would leave tariffs on China for a "substantial period of time." "We are not talking about removing them, we are talking about leaving them," he said. "We have to make sure that if we do the deal with China, that China lives by the deal," he said. Trump said the deal "is coming along nicely." There's currently a 10% tariff on an array of Chinese goods.
Gold markets tried to rally initially during the trading session on Wednesday but then turned around the show signs of weakness again. As we wait the Federal Reserve, the Gold markets of course are going to be very sensitive to the greenback.
The US dollar tried to rally during the trading session on Wednesday, but as you can see continues to give back the gains as we break above the ¥111.50 level.
The British pound broke down during the trading session on Wednesday, falling towards the 1.3150 level. At this point, it’s very likely that we will find some type of support underneath, perhaps even as low as 1.30 if things get ugly.
The British pound pulled back a bit during trading on Wednesday, reaching towards the ¥146 level. There is a significant amount of support underneath, so at this point I’m thinking value more than anything else.
The Euro continues to grind during the trading session on Wednesday as we are hovering in the vicinity of the 50 day EMA. Because of this, it looks very likely that although things are somewhat bullish, the reality is that we might be getting a bit overdone.
The Australian dollar pulled back a bit during the trading session on Wednesday but found support near the 0.7050 level. By doing so, we turned around of form a bit of a hammer going into the US trading session.
Investing.com - The U.S dollar fell after the Federal Reserve left rates unchanged and signalled rates could be close to neutral after downgrading its outlook on future rate hikes.
Tuesday’s price action in the Indian rupee, that saw the currency hit a seven-month high and then retreat offers a warning to investors about emerging markets.
The Fed is widely expected to leave its benchmark interest rate unchanged, trim the number of rate hikes projected for the rest of the year, and release long-awaited details of a plan to end the monthly reduction of its massive balance sheet.
Gold and silver are trading down on the day as investors wait for the Fed and traders are positioning on USD. Palladium reaches fresh all-time highs.
Based on the early price action, the direction of the April Comex gold market the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $1309.80 and the uptrending Gann angle at $1298.80.
Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1357 and the downtrending Gann angle at 1.1350.
Volatility should be the theme today in the gold market because the Fed announcements contain multiple components. Firstly, there’s the economic projections which are expected to show the Fed will cut the number of potential rate hikes. This is potentially bullish for gold prices.
Markets in Europe drifted lower, led by German chemical company Bayer AG as a U.S. court judgement blamed Bayer’s weedkiller product Roundup for causing a case of cancer. German equities led the declines in Europe, with the DAX (DAX) falling 0.94% from Tuesday’s close to 11680.7, giving back Tuesday’s gains of 0.85%. The U.K.’s FTSE 100 (UK:UKX) was essentially flat at 7,321.7, having climbed 0.6% Tuesday.