The FOMC meeting is very much front of mind for traders ahead of Wednesday’s open, but despite the fact a rate cut is sees as being as good as guaranteed, markets are pointing towards a lower open. News after last night’s close from the shipping and logistics firm FedEx showed that the ongoing trade dispute between the US and China was dragging on the company, with a downgrade of profit guidance for the full year sending its shares sharply lower. Data like this is solid evidence that the trade war is having a meaningful impact on the health of many businesses.

Beyond that expected rate cut later today, it’s going to be the tone of Jerome Powell’s comments which will be most closely followed. Opinions are divided as to how many more rate cuts will be seen by the year end, so anything that puts a more hawkish spin on the outlook could see stocks slide lower. However, with oil prices reverting fairly quickly after the weekend’s attack on Saudi Arabia, concerns over the inflationary pressure this may have brought can arguably be side lined. President Trump is also adamant that rates need to go much lower, too and although the Fed will want to maintain its independence, the lingering threat of recession may prove sufficient to dictate a more dovish narrative.

Ahead of the open, the market is calling the DOW down 22 at 27089 and the S&P down 1 at 3003.

The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: trade war optimism skews the risk to the upside

The EUR/USD pair has rallied to 1.1062 on Friday, its highest since September 20, as risk-on prevailed heading into the weekend. Reports on progress in trade talks between the US and China.


GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. 


USD/JPY consolidating bull rally into 108 handle on US/Sino trade deal optimism

USD/JPY starts out the week flat to Friday's close after markets rallied at the end of the week. Bullish geopolitical undertones in the form of a U/Sino 'phase 1' trade deal help lift USD/JPY onto the 108 handle.


US China trade deal propels US markets and yields higher and leaves dollar mixed

The US and China reached a limited trade deal on Friday a first step on the path to what both sides said could be a more comprehensive pact later in the year. President Trump said the countries reached a “very substantial phase one deal”.

Read more

Gold slumps below $1,480 as risk appetite continues to dominate the market

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China.

Gold News

Forex Majors