FOMC Statement Could Prove a Wildcard

Trading Set to Become Volatile

A Consumer Confidence report from the U.S on Tuesday proved to be strong. Wall Street turned in good day of trading across the major Indexes. Yesterday’s solid economic report and better results in equities sets the table for the critically important Federal Reserve’s FOMC Statement later today. The Fed will not raise its interest rate, but its outlook for the remainder of the calendar year will prove vital in the broad markets. The U.S Dollar has largely range traded early this week, but forex is certain to become volatile in the coming hours.

Nikkei 225 Index Shows Risk Appetite

Japanese equities led by the Nikkei Index have turned in gains this morning as traders have shown the ability to take on additional risk ahead of the U.S central bank’s policy pronouncements. The Yen has been weaker against the U.S Dollar and the 112.00 juncture will prove crucial. Inflation results via the Services sector in Japan matched expectations today.

U.K. GDP Data on Docket

The FTSE 100 and Dax were able to turn in positive results on Tuesday as European equities provided a good day of trading. The Euro and Pound have been range bound against the U.S Dollar early this week, leading up to today’s U.S Federal Reserve outlook regarding interest rates. The U.K will release noteworthy Gross Domestic Product statistics this morning and a gain of 0.3% is expected.

Economy Optimism Helps Oil

Crude Oil has proven a buyer’s market early this week. The commodity has climbed above 48.00 U.S Dollars a barrel. Crude Oil Inventories will come from the States today. Speculators seem to be positioning themselves based on their belief better economic conditions globally will cause Crude Oil prices to rise further.

Yaron Mazor is a senior analyst at SuperTraderTV.

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