The FOMC Meeting Waits in the Shadows

Cautious Trading on Wall Street

Existing Homes Sales data from the U.S missed its estimate on Monday. Today the Conference Board’s Consumer Sentiment reading will be published. Wall Street remained very cautious on Monday as traders showed little inclination to test the major Indexes. The Federal Reserve’s Monetary Policy Statement tomorrow is beginning to loom on the horizon and investors will likely remain tranquil until its publication.

Yen Maintains Consolidated Strength

The Yen has continued to be strong against the U.S Dollar in early trading. The Nikkei and Topix Indexes have seen more cautious selling, but it is important to note both of the major Japanese equity exchanges have added more than 20% of value the past year. Inflation data will start to come from Japan tomorrow with the Services Producer Price Index.

FTSE Leads Selling in Europe

Important Business Climate data will come from Germany this morning. Yesterday’s Manufacturing and Services Purchasing Managers Index readings missed their targets from the nation. The Euro has been consolidated and the 1.1650 level has been in focus against the U.S Dollar. The Pound has proven interesting and has been able to hold onto higher values. Tomorrow Gross Domestic Product data will come from the U.K and it will impact the British currency.

Gold’s Tight Range for Traders

Gold has maintained an extremely tight range slightly above the 1260.00 U.S Dollars an ounce mark the past twenty four hours. The U.S Federal Reserve’s policy statement tomorrow will have an impact on the precious metal and until then short term traders may seek short term reversals. However, speculators may seek the possibility of more upside momentum.

Yaron Mazor is a senior analyst at SuperTraderTV.

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