The Fed Reserve set markets alight after they raised interest rates overnight, while they also released their quarterly economic projections. Markets will look to the US again as it publishes more crucial economic data.

Currencies endured some wild swings at the time of the Fed meeting, with the euro and pound no exception. The EUR/USD opened at $1.17649 and remained flat early. Mid-session saw the pair fall to lows of $1.17250 before rallying into the Fed meeting, reaching $1.17643. When the Fed announced their projections and interest rate, there was quite a lot of volatility, the pair spiking to $1.17970 then plummeting to near session lows of $1.17302. The pair recovered, climbed to $1.17709 then fell again to $1.17364. It is currently trading at $1.17501. The GBP/USD followed a similar path to the euro after opening at $1.31753. The pair remained flat early, the slid to lows of $1.31368 mid-session. The pair then rallied into the Fed meeting, spiking to a high of $1.32166. The pound then fell to $1.31575. It is currently trading at $1.31713.

Indices were not immune, with the Dow copping the brunt of volatility. The index opened at 26,499.82 and climbed slowly but surely throughout the session, peaking at 26,606.92 as the Fed meeting concluded. The Dow then tumbled to lows of 26,348.66 an hour later on the back of a stronger US economy and less likelihood of cheap borrowing. The Dow recovered slightly and is currently trading at 26,405.70. The Dax opened the session at 12,377.31 and shot up to a high of 12,421.70 during the first hour of trade. It then experienced a sharp decline in the following hour, giving up all of those gains. It continued to fall until it hit lows of 12,324.10. The Dax bounced off those lows, climbing to 12,390.01 before falling into the close and ended the session at 12,342.00.

The day ahead shapes up to be another big one for markets, with the US releasing more crucial economic data. The two most significant pieces of data being published is the Final GDP and the Core Durable Goods Orders. Both figures are vital enough to cause more volatility in markets. Keep an eye on indices as these figures are good indicators for the strength of the US economy. Other data set for release today and the early hours of tomorrow morning include:

NZ – Building Consents

UK – GfK Consumer Confidence

Canada – BoC Governor Stephen Poloz speaks

Japan – Tokyo Core CPI, Unemployment Rate, BoJ Summary of Opinions, Prelim Industrial Production, Retail Sales

Europe – German GfK Consumer Climate, German Prelim CPI, European Private Loans and M3 Money Supply, ECB Economic Bulletin, ECB President Mario Draghi speaks

US – Durable Goods Orders, Goods Trade Balance, Prelim Wholesale Inventories, Unemployment Claims, Pending Home Sales, Natural Gas Storage, Fed Chair Jerome Powell speaks

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