Here is what you need to know on Wednesday, September 16:
Tension is mounting ahead of the Federal Reserve's decision. Oil, gold, and the yen are somewhat stronger and US retail sales are also set to have a significant impact. A probe into Facebook's practices and deliberations in the British parliament are also eyed.
The Federal Reserve is expected to leave its policies unchanged in its last elections before the elections. The Fed publishes new forecasts for growth, inflation, employment, and rates. These projections and Federal Reserve Chairman Jerome Powell's tone are set to rock markets.
Concerns of a slow recovery without imminent action may hurt sensitive markets. The world's most powerful central bank may also shed more light on its new policy framework which focuses on employment and allows inflation to overheat.
- September FOMC Preview: Projections, projections, projections
- How the Fed could drown markets while trying not to rock the boat
Ahead of the Fed, the US publishes retail sales figures for August – the first post-pandemic month where government support was withdrawn. Nevertheless, another month of growth is on the cards:
The Federal Trade Commission (FTC) has reportedly opened an antitrust probe into Facebook's practices. That development is weighing on tech stocks and may impact currencies as well.
Gold has been stabilizing on higher ground, rising with equities. It is also waiting for the Fed for the next move.
Oil prices have been on the rise as hurricane Sally is advancing in the Gulf of Mexico and has already triggered the shuttering of some installations. Private inventory data has shown a drawdown, also supporting crude prices.
USD/JPY is trading closer to 105, extending its gradual losses and losing its inverse correlation with stocks. Yoshihide Suga has officially assumed his position as Prime Minister, replacing his long-serving boss Shinzo Abe.
EUR/USD is stable around 1.1850, Ursula von der Leyen, President of the European Commission, delivers her wide-ranging State of the Union speech later on Wednesday.
UK Prime Minister Boris Johnson is trying to soothe concerns about his controversial Internal Markets bill. The legislation knowingly violates the Brexit accord with the EU, angering both the bloc and his fellow Conservative Party members. The bill passed the first hurdle and is set for a second vote next week.
UK inflation beat estimates with 0.2% yearly in August. Inflation figures are due out from Canada
Cryptocurrencies have stabilized after recovering, with Bitcoin trading around $10,800.
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