Markets await Fed meeting

March 20, 2019

Plenty of data around today as we build up to a busy back end of the week.

The EURUSD made some solid gains overnight after opening at $1.13317. The pair dipped to a low of $1.13293 in the opening hour before a solid climb during a large chunk of the session saw it peak at $1.13609. It has come off those highs and is currently trading at $1.13518. The GBPUSD remained largely flat after opening at $1.32524. The pair made some gains throughout early and mid-session trading, hitting highs of $1.33101. It gave up those gains fairly quickly however, dropping to lows of $1.32393 a short time later. It has come off those lows and is currently trading at $1.32663.

The Dow looked set for another strong session until a sell-off late in the day. The index opened at 25,929.62 and made some gradual gains early, before steeper gains mid-session saw the Dow hit highs of 26,118.61. Just as it looked set to continue its rise, the sell-off kicked in. Late trading saw the Dow fall to lows of 25,818.09. It is currently trading at 25,863.36. The Dax was able to withstand the Dow sell-off, posting some solid gains overnight. The German index opened the day at 11,650.60 and dipped to an opening-hour low of 11,645.45. From there, the Dax rallied over the next several hours, peaking at 11,823.68. It came off those highs late in the session before closing at 11,748.23.

Markets turn their attention to the latest Fed Reserve interest rate meeting in the early hours of tomorrow morning. While rates are not expected to change, the commentary from Fed Chair Jerome Powell will come into focus. There, he will give the Fed’s economic outlook and the likely make up of future monetary policy settings. This will be crucial to listen to as the Fed has changed its language over the last 12 months from a hawkish tone to a more dovish one.

Data released today and the early hours of tomorrow morning includes:

NZ – GDP

Australia – RBA Assistant Governor Michele Bullock speaks

UK – CPI & Core CPI, RPI, PPI Input & Output, CBI Industrial Order Expectations

US – Federal Funds Rate, FOMC Statement, Economic Projections and Press Conference, Crude Oil Inventories

 

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