A hectic Wednesday coming up, with the US Fed Reserve wrapping up their interest rate meeting in the early hours of tomorrow morning.

The EURUSD tanked overnight thanks to Mario Draghi’s comments that more stimulus may be required to lift inflation in Europe. The pair opened at $1.12207 and climbed in early trading, before peaking at $1.12418 mid-session. Then Mario Draghi opened his mouth, sending the euro down sharply to a low of $1.11804 just two hours after hitting its high. It has recovered some of those losses but is struggling to get back above $1.12, currently trading at $1.11954. The GBPUSD endured a more positive session than its European counterpart. The pair began the day at $1.25321 and traded rather flat early, before falling to a low of $1.25050 mid-session. The pound bounced off those lows and regained earlier losses as it hit a late high of $1.25639. It has opened high this morning and is currently trading at $1.25647.

The Dow went off to the races overnight as news broke that Donald Trump will be holding further trade talks with China at the G20 summit. The index opened the day at 26,141.00 and was flat early, dipping to a low of 26,059.64 mid-session. The Dow surged from that point however, powering its way to a high of 26,533.07. It has come off those highs slightly, currently trading at 26,511.25. The Dax was alive and kicking last night, helped by a surging Dow and Mario Draghi’s comments of more stimulus. The German index opened at 12,071.76 and dropped to a low of 11,982.49 in early trading. The Dax surged for most of the session from that point, peaking at 12,359.55 late in the day before closing at 12,334.92.

The day ahead shapes up to be a big one for markets as the Fed Reserve concludes their interest rate meeting. There have been some calls for an interest rate cut, but that is not expected at this meeting. Economic data emanating from the US remains quite strong, so most people would see a rate cut as a strange decision.

Other data published today includes:

NZ – GDP

Australia – MI Leading Index

Canada – CPI, Core, Median, Common and Trimmed CPIs

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

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

Europe – European Current Account, German PPI, Italian Trade Balance, Swiss SNB Quarterly Bulletin, ECB President Mario Draghi speaks

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