Mixed Results on Equity Markets as Fed Looms, Euro Producing Gains
Wall Street’s mixed day of results on Tuesday appears ready to repeat itself. Futures markets for U.S equities show traders remain cautious. The Federal Reserve will issue its interest rate decision and outlook later. While no change to the interest rate is likely, the Fed’s monetary policy publication will influence the broad markets. Asian Indexes were tentative today, Japanese equities declined slightly, but in China, the Shanghai Shenzhen composite did put in fractional gains, as the Hang Seng lost a bit of ground. European markets have found some buyers today, who may be taking advantage of the weakened Euro and Pound.
Support Levels for Euro & Pound Key Focus, Hawkish Fed Rhetoric Influence
The Euro is trading barely above the 1.20 level this morning against the U.S Dollar, while the Pound is near the 1.3640 juncture. U.K Manufacturing and Lending figures were disappointing yesterday, which highlighted last week’s poor growth numbers from Britain. Forex traders are not expecting the Fed to raise interest rates today, but a combination of hawkish rhetoric from the U.S central bank and lackluster European economic data the past couple of weeks has certainly put a damper on the Euro and Pound. Long-term support ratios are being pressured for both currencies against the U.S Dollar.
Gold Traversing Dangerous Support Levels, Brief Rebound for Precious Metal
Gold continues to traverse dangerous support. The precious metal is near 1310.00 U.S Dollars per ounce. And although the commodity briefly rebounded this morning in early trading, it looks vulnerable and ready for volatility.
Fed’s Interest Rate Statement Coming, U.S Jobs Numbers Begin Today
The Federal Reserve’s Monetary Policy Statement will be released at 18:00 GMT and will get plenty of attention.
US Dollar Index Price Forecast
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See all US Dollar Index forecasts- 12:15 PM GMT, U.S, ADP Non-Farm Employment Change
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Yaron Mazor is a senior analyst at SuperTraderTV.
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