Bearish Equity Sentiment Remains Assertive, All Eyes on FED MeetingGlobal equities have turned cautious in Europe before the U.S Federal Reserve’s FOMC Statement and Press Conference.
The broad markets will react to Chairman Jay Powell’s policy rhetoric. The Fed is anticipated to raise its interest rate.
Suspicious Results from NASDAQ on Tuesday, Tentative Trading Prevails
Global equities have turned cautious as the U.S Federal Reserve’s rate decision is waited on. Asian markets reversed from their highs and finished with declines, turning positive trading for the Hang Seng into a losing session. And European Indexes have also been extremely tentative this morning. Wall Street was able to gain on Tuesday, but the results should be viewed suspiciously. Particularly when looking at the NASDAQ’s gains yesterday, which were incremental compared to Monday’s stark drops in value. Wall Street is being called to open with numbers in the red, while short-term bearish sentiment remains assertive as caution prevails.
Fed Press Conference in Focus, Forex Testing Ranges
Forex has seen a test of ranges this morning as Euro and Yen investors brace for the Fed’s Monetary Policy Statement and Press Conference. An interest rate hike is widely anticipated from the U.S central bank, but it is the Fed’s outlook which will propel the broad markets. Many analysts believe the Fed will want to keep its aggressive stance intact, but recent U.S economic data has shown inflation is still not hitting its higher targets. Thus, the rhetoric which is delivered from Chairman Jay Powell during his question and answer session with the media will become must-watch television for investors. The U.K has released its Average Hourly Earnings statistics and the inflation numbers were higher than expected, and the Pound reacted with a short-term gain versus the U.S Dollar.
Gold Pushes up Slightly Early, Traders Ready for Speculative Ignition
Gold has pushed slightly higher this morning after stumbling to lows late in the night. The precious metal is near 1316.00 U.S Dollars an ounce and traders should be ready for fast conditions to ignite as speculation grows before the U.S interest rate announcement.
Fed Statement & Interest Rate Announcement, U.S Crude Oil Supply Data
Global investors will turn their attention to the U.S Federal Reserve at 18:00 GMT when its Monetary Policy Statement is released.
- 14:30 PM GMT, U.S, Crude Oil Inventories
- 18:00 PM GMT, U.S, FOMC Statement
- 18:30 PM GMT, U.S, Federal Reserve Press Conference
Yaron Mazor is a senior analyst at SuperTraderTV.
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