Here is what you need to know on Wednesday, March 17:
Markets are cautious ahead of the all-important Federal Reserve decision, despite rising US yields with major pairs clinging to round levels. The EU is getting closer to resuming vaccination with AstraZeneca, gold is back to the higher range and Bitcoin is moving higher.
Calm before the storm: The Federal Reserve is set to leave its policy unchanged but publish closely-watched forecasts for growth, inflation, employment and interest rates. Markets foresee an earlier increase in borrowing costs than the Fed and fear a bump up in inflation.
Federal Reserve Chair Jerome Powell will hold a press conference and will try to balance between acknowledging the vaccine and stimulus-led recovery without raising concerns of overheating and rate hikes.
Ahead of the Fed, Tuesday's US Retail Sales report for February showed a large drop of 3%, albeit on top of an upward-revised statistic for January. Moreover, the sharp drop was attributed to storms in the southern US.
Currencies: EUR/USD is hovering around 1.19, GBP/USD is trading near 1.39 and USD/JPY is at 109, all experiencing narrowing ranges. Gold is has surpassed $1,730, potentially reflecting speculation that the Fed remains dowvish.
Vaccines: European regulators say that the benefits of using the AstraZeneca jabs outweigh concerns of blood clots that have arisen in recent days. Several leaders also signaled they are ready to lift their suspensions, which may derail the EU's already sluggish vaccination campaign. A decision is due on Thursday.
Data: Final eurozone Consumer Price Index figures for February are set to confirm an increase in headline prices attributed to temporary factors. USD/CAD is trading around 1.24450 ahead of Canada's release of inflation and crude oil inventories data.
Cryptocurrencies: Bitcoin is trading around $56,000 and Ehtereum under $1,800 as cryptocurrencies also practice some calm after a busy weekend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.