The FOMC is gathering, will we see a 50 basis point cut tomorrow?

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 17th, 14:30 CET CA Consumer prices index.

US Fed

Today, the Federal Reserve will start their meeting to decide upon the interest rate in the US moving forward. Since markets have moved strongly against the Dollar in the past few days the expectation rises that the Central Bank might cut rates even in volume of 50 basis points during this meeting. The Greenback is currently trading at the lowest since January this year. A small preview of the economy might be given with the retail sales numbers due later today.

Market talk

Most currencies continue to gear up steam against the Dollar. In particular the EUR and the GBP have resumed their recent upside momentum and also precious metals continued higher. The technical support in oil seems to last and the market is finding some positive momentum. Whether the trend might last will be hard to say as the economic outlook remains rather negative. This could hence drive the demand for oil lower, causing prices to weaken again. Bitcoin might find further upside based on the current 50- moving average support zone based on the weekly chart, whereas ETH is lagging behind. The JPY has geared up steam again this week against most other currencies.

Tendencies in the markets

Equities positive, USD weak, cryptos sideways, oil stronger, metals sideways, JPY stronger

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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