U.S. Dollar will be in Spotlight Remainder of Day
The Federal Reserve will release its FOMC Statement today. Crude Oil Inventories will also be published. Forex and equity markets will react to the Monetary Policy Statement from the Fed quickly and fast markets will become prevalent as the day develops.
What will the Fed Say? Impact on Markets is a Certainty
The Federal Reserve is in the bright global spotlight, as investors anticipate the release of the FOMC Statement. Investors do not expect an interest rate hike from the Federal Reserve, but anxiety has increased among traders because the Fed’s outlook is unknown. The Fed may offer a more moderate tone today, compared to its publications which have been quite hawkish the past six months. If the Federal Reserve implies a December hike is not a firm possibility, forex and equity markets will react with fast conditions.
Inflation Data from Japan Meets Target, Yen Gives Back Value to U.S. Dollar Early
Asian markets added value on most of the major equity Indexes today in a cautious manner, as investors proved capable of adding some risks to their portfolios. The Services Producer Price Index from Japan met expectation with a gain of 0.8%. While Asian investors will certainly be focused on the results per the Federal Reserve’s pronouncements later today, they will also start anticipating more inflation data from Japan which will be published on Friday. The Yen has been weaker against the U.S Dollar this morning.
Euro & Pound Traders Anticipate U.S. Central Bank, Equities Stay Positive in Europe
European equities have opened with gains following up on Wednesday’s positive trading session. The Euro and Pound have been in a tight consolidated range against the U.S Dollar the past day, but this will start to change rapidly as traders begin to position themselves ahead of the U.S central bank’s monetary policy publication. An important German Consumer Climate survey will be presented tomorrow and on Friday inflation data will come from the nation.
Crude Oil Trend Stronger, Traders Could be Tempted to Buy
Crude Oil has seen a speculative flair develop this week. The commodity has come off lows and is now testing important resistance. The 49.00 U.S Dollars a barrel level could act as resistance, but traders may be tempted to climb aboard the short-term trend which has developed. Crude Oil Inventories will be released from the States today and should be monitored.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
