The Fed and Geo-Politics Being Contemplated

Wall Street is within record territory and equities will be influenced by the Federal Reserve. Whispers regarding a tax reform deal in Washington will get the attention of investors too. And the German election this coming Sunday is being largely anticipated.

Fed’s Influence on Equities, Whispers Regarding a Tax Reform

The Federal Reserve’s Monetary Policy Statement will get plenty of attention. Equity markets are certain to be influenced by the Fed’s outlook as record highs are tested. The Dow Jones Industrials has put in a week and half of solid gains. Washington politics will also prove noteworthy as whispers about a tax reform package swirl. The broad markets will definitely react to the Fed and Washington in the coming days.

Geo-Political Contemplation, Yen Remains within Weakened Range

After putting in huge gains early this week, Japanese investors have shown some caution. The Bank of Japan’s coming pronouncements is shadowing the Yen, which remains in a weakened range against the U.S Dollar. Market participants will also keep their eyes on geo-politics in the days to come as North Korea and its potential reaction to the Donald Trump speech are contemplated.

Coalition after Vote a Big Question for Euro, German Manufacturing

The German election which will take place on Sunday has begun to influence Euro investors. While the European currency is certainly trading in correlation to perceptions surrounding the U.S Federal Reserve’s outlook, the outcome of the German vote and the coalition which will need to be formed are large question marks going into the weekend. Manufacturing data from Germany this Friday will be monitored too.

Gold’s Test of Mid-Term Strength, Gold’s Temptation Attracting Traders

Gold has not fallen through important support and has seen some speculative buying as equities have become more cautious. The precious metal will certainly be tested by traders and its mid-term strength and recent decline will attract additional speculation.

Fed’s FOMC Statement, Bank of Japan’s Pronouncements

The U.S Federal Reserve will release its Monetary Policy Statement at 18:00 GMT today. The Bank of Japan will conduct its Press Conference at 6:30 GMT on Thursday. And on Friday, Germany will issue a Manufacturing Purchasing Managers Index at 7:30 GMT.

• Wednesday,18:00 PM GMT U.S., FOMC Statement
• Thursday 6:30 AM GMT Japan, Bank of Japan Press Conference
• Friday 7:30 AM GMT Germany, Flash Manufacturing PMI

Yaron Mazor is a senior analyst at SuperTraderTV.

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