Cautious Trading Sentiment as Risk Events Approach

Federal Funds Rate Tomorrow

The three major Indexes slightly declined on Monday as storm clouds loom over Wall Street. Washington will produce more political turmoil today. Attorney General Jeff Sessions will sit before Congress and answer questions about the Trump administration’s role in the alleged Russian election saga. The U.S Federal Reserve is also a dominant story, as it waits to unleash its Federal Funds Rate and Monetary Policy Statement on Wednesday. Producer Price Index reading will be issued from the States today. The U.S Dollar has essentially been in a consolidated mode against most major currencies as investor sentiment has grown weary.

Manufacturing Index Weaker in Japan

The Nikkei and Topix Indexes have seen slight gains in early trading as they have reversed off of Monday’s declines. The Hang Seng and Shanghai Shenzhen composites have also performed in positive territory. The Bank of Japan’s Manufacturing Index provided another negative economic result today with an outcome of minus -2.9. The outcome continues the poor data which Japan has recently published. Early on Wednesday, China will publish its Industrial Production figures.

U.K. Investors Want Clarity

Consumer Price Index report will come from the U.K today, and Germany will see an Economic Sentiment reading which will prove worth a look. European equities turned in a cautious day of trading on Monday with losses across the major exchanges, including the Footsie and Dax. U.K investors have been unnerved by the lack of political cohesion from the Theresa May led Tory government, which continues to search for an agreement which will let it govern effectively over the mid-term. The Pound has been under pressure against the U.S Dollar and the 1.26 level has come into sight.

Central Banks Causing Consolidation

Gold has traded in a tight range the past day, as a wave of central bank monetary policy statements gets set to start on Wednesday. However, today’s inflation statistics from the U.K and U.S could factor into trading for the precious metal, which appears to have short-term resistance near 1270.00 U.S Dollars an ounce.

Yaron Mazor is a senior analyst at SuperTraderTV.

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