Markets Hold Their Breath for the FOMC Minutes [Video]

Global markets traded a bit lower on dampened risk tone, in the EU a  wave of risk appetite prevailed this morning with investors looking forward to the Federal Reserve today, with the U.S. central bank scheduled to publish its latest meeting minutes at 18:00 GMT. 

Chances are that the Fed will stick to its position which could elevate the USD further, especially given that almost every other central bank turned dovish already, and also given the economic struggle for example Europe is dealing with, to which now further political uncertainty was added with the dissolution of the Italian government which increased the risk for the  EUR.

Forex Preview: EUR Subdued After Strong Uptick

In the forex markets, we expect USD strength to prevail. The USD is currently the only currency with a strong outlook and could push even higher if the FOMC minutes do not disappoint tonight Meanwhile, the EUR remained rather subdued after noting an uptick yesterday when Italian Prime Minister Giuseppe Conte announced he will resign, slamming Deputy PM Matteo Salvini for pushing for a no-confidence vote. The EUR remains troubled from multiple angles, such as economic struggle, and political risks in Italy and of course the Brexit.

Oil Prices Recover, Gold Dips

Oil prices tumbled this morning but later recovered on a less stock build than previously expected and is likely to follow suit with the risk tone in the markets. Meanwhile, spot gold held near its $1,500 level and continues to look good on a possible further ascent.

BTC Tumbles After Failing to Break Above 11K

Elsewhere, bitcoin was not able to sustain or break to the upside yesterday and was followed with a heavy sell-off his morning re-testing the 10k level which held at the first attempt. The immediate outlook seems rather fragile, however.