BoC and Fed in focus

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 28th, 01:30 CET AU Consumer price index.
Wed, 28th, 15:45 CET CA BoC Rate statement.
Wed, 28th, 20:00 CET US FOMC interest rate decision.
Wed, 28th, 20:30 CET US FOMC press conference.

Fed preview

Today, the Federal Reserve Central Bank is deciding upon their interest rate moving forward. It is not expected that rates will be reduced. Yet, during the press conference markets might turn volatile depending on the words used by Jerome Powell. The Dollar has lost some steam during recent trading and a potential rate cut would also cause the the Greenback to weaken further. Vice versa the weakness of the Dollar has also helped equities to rise. The S&P 500 and Nasdaq index both might gear up steam. Especially the S&P looks strong as it had created a new all- time- high during early trading today.

Market talk

The general risk sentiment in markets continues to remain positive but might face some profit- taking. Consumer confidence in the US is losing momentum as the population is getting worried about the general state of the economy. While professional investors remain fully invested no cash reserves mean that the injection of fresh liquidity might remain low. Fresh upside momentum has hence to come from the retail sector. Hence the focus on today’s data remains important and trading positions should be well protected healing into the news.

Tendencies in the markets

Equities positive, USD weaker, crypto sideways, oil positive, Silver sideways, Gold strong.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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