Markets await Fed meeting

October 30, 2019

Finally, we have a circuit breaker in the Brexit saga, with an election set for December 12. Meanwhile, traders keenly await the latest Fed Reserve interest rate meeting

The EURUSD made some modest gains overnight after opening looking like it was going to be a negative session. The pair opened at $1.10990 and slid throughout the first half of the day, eventually falling to a low of $1.10729 mid-session. The euro rebounded off those lows, climbing to a high of $1.11180 late in the day. it is not far off those highs, currently trading at $1.11123. The GBPUSD opened and closed rather flat due the political events surrounding Brexit. The pair began the day at $1.28564 and was steady early, before falling to a low of $1.28057 mid-session. It bounced off those lows, rallying to a high of $1.29042 late in the day. The news of an upcoming election in the UK put a dampener on the pound, retreating back to its current $1.28662 level.

Indices were largely flat overnight, unsure which direction they wanted to head. The Dow opened at 27,112.43 and was flat in the first half of the day, dipping to a low of 27,030.78 late in the day. It came off those lows, edging up to a high of 27,143.48 a short time later. It is not far off those highs, now trading at 27,129.80. The Dax ended the session in slightly negative territory as it took a breather from the gains of the previous several days. The German index began the day at highs of 12,971.96 and dropped early, eventually bottoming-out at 12,896.00. It climbed off those lows, regaining some of those earlier losses before closing at 12,935.32.

The day ahead is set to be a hectic one, with a deluge of data scheduled for publication. This is highlighted by the latest Fed Reserve interest rate meeting. The central bank is expected to cut rates by up to 25 basis points to 1.75% in order to counter-balance trade tensions and trying to maintain economic growth. Meanwhile, geopolitical events have ramped up, with the UK set for a general election which will hopefully break the Brexit gridlock.

Other data published today includes:

Japan – Retail Sales

NZ – Building Consents

UK – BRC Shop Price Index

Australia – CPI & Trimmed CPI

Canada – BoC Overnight Rate, Monetary Policy Statement and Press Conference

US – FOMC Federal Funds Rate, Rate Statement and Press Conference, Advance GDP & GDP Price Index, ADP Non-Farm Employment Change, Crude Oil Inventories

Europe – German Prelim CPI & Unemployment Change, French Flash GDP & Consumer Spending, Spanish Flash CPI, KOF Economic Barometer and Credit Suisse Economic Expectations


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