S&P 500 Futures print mild losses below 3,400 amid the pre-Fed trading lull

S&P 500 Futures struggle to extend the two-day rise amid mixed clues.
Trade war fears join a light calendar to challenge the market’s previous optimism.
Coronavirus case numbers jump in Texas but vaccine hopes dim the pandemic woes.
Fed is widely expected to keep the monetary policy unchanged, quarterly economic forecast will be the key.

Anil Panchal FXStreet

S&P 500 Futures tread water around 3,390, down 0.10% intraday, during early Wednesday. In doing so, the risk barometer snaps the last two days’ run-up ahead of the US Federal Reserve (Fed) announcements.

Other than the traders’ generally followed pre-event cautious sentiment, a light calendar and mostly dead news feeds also add to the market’s lack of activity.

Even so, recent trade jitters between the US and Canada, surrounding the American aluminum tariffs, join the coronavirus (COVID-19) news to offer intermediate moves.

Following its open threat to any further aluminum tariffs from the US, Ottawa extended the border restrictions with America by a month to October 21.

Also on the trade side could be the World Trade Organization’s (WTO) verdict terming the US sanctions on China as against international law.

Elsewhere, Texas registered the biggest jump in daily cases with 4,816 addition for Tuesday. Though hopes of finding the cure to the pandemic, backed by the latest research at the University of Pittsburgh School Of Medicine, conquer the virus woes.

Looking at the calendar, New Zealand’s Current Account data for the second quarter flashed upbeat signs and so does Japan’s August month Merchandise Trade Balance Total. Further, Australia’s Westpac Leading Index grew past-0.06% prior readings to 0.48% in the previous month.

Moving on, traders will pay a little heed to the second-tier economics, if any, ahead of the US Fed’s monetary policy announcements. Though, the UK Consumer Price Index and Retail Sales from American may offer intermediate moves. It should, additionally, be noted that the risk catalysts may gain upside momentum should the Fed chooses to sound optimistic.

Read: September FOMC Preview: Projections, projections, projections

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.