Markets slide as FOMC approaches

Important news this week

• Tue, 15th, 08:00 CET UK Claimant Count Change.
• Wed, 16th, 20:00 CET US FOMC Interest Rate Decision.
• Thu, 17th, 13:00 CET UK BoE Interest Rate Decision.
• Fri, 18th, JP BoJ Interest Rate Decision.

Markets slide as FOMC approaches

The US Dollar remains strong as markets turn increasingly cautious ahead of the FOMC. Stocks are tumbling, while Gold and Silver are moving lower under pressure from the stronger Dollar. The Japanese Yen is weaker again, while Crypto is correcting. BTC is approaching a key technical test and could fall below its 50-week moving average, while ETH remains above $2,405.
WTI is also in focus as the oil price approaches the $104 level. A break above could create fresh upside momentum. With risk sentiment deteriorating, markets could remain vulnerable to further weakness ahead of the Fed decision.

Market talk

The broader market is increasingly focused on the Fed's reaction function. Investors are not only watching the expected rate decision, but also how policymakers assess the balance between inflation and economic growth. The guidance could therefore be more important than the rate decision itself, particularly if markets have already positioned aggressively ahead of Wednesday.
One of the key questions for the coming days is whether the current weakness remains concentrated in risk assets or develops into a broader market correction. Defensive positioning ahead of a major central-bank event can create exaggerated moves, especially when liquidity is lower and investors are unwilling to take large positions. The reaction after the FOMC could therefore be more important than the moves we are seeing before the decision.

Tendencies in the markets

• Equities weaker, USD stronger, crypto correcting, oil strong, metals weaker, JPY weak.