Market wrap: markets await FOMC tonight - Westpac
|Analysts at Westpac offered a market wrap leading into the early Asian session.
Key Quotes:
"Global market sentiment: Most markets were contained ahead of tonight’s FOMC decision, although AUD and NZD did extend yesterday afternoon’s rallies.
Interest rates: The US curve flattened further overnight, 2yr treasury yields rising from 0.74% to 0.77% - a fresh one-month high. Market pricing of the Fed funds rate was little changed, implying a 30% chance of a rate hike in September, a 60% chance by December, and 100% by Sep 2017. 10yr yields ranged sideways between 1.55% and 1.59%.
Currencies: The US dollar index pulled back slightly. EUR initially rose from 1.0990 to 1.1030 but then fell to 1.0978. USD/JPY pared some of the day’s loss, rising from 104.00 to 104.98. AUD extended yesterday afternoon’s rise to 0.7540 before slipping back to 0.7505. NZD similarly extended to 0.7086 before slipping back to 0.7033. AUD/NZD fell from 1.0680 to 1.0635."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.