It’s all Eyes on the FOMC, the Economic and Interest Rate Projections…
Earlier in the Day:
It was a particularly quiet start to the day on the economic calendar this morning. There were no major stats from the Asian session to provide the markets with direction.
While there were no stats, the BoJ is in action later this morning. The markets are not expecting any surprises, however, leaving the FOMC policy decision and projections in focus.
The Day Ahead
For the EUR
It’s another particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.
The lack of stats will leave the EUR in the hands of market risk appetite and sentiment towards FED monetary policy and projections due late in the day.
At the time of writing, the EUR was down by 0.01% to $1.1725.
For the Pound
It’s also a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.
The lack of stats will leave the Pound in the hands of market risk sentiment, though there will be some consideration of Thursday’s MPC policy decision. Ahead of the disappointing retail sales figures, economic data had pointed towards a more hawkish MPC…
At the time of writing, the Pound was up by 0.02% to $1.3662.
Across the Pond
It’s also a relatively quiet day ahead. Housing sector numbers for August are due out later in the day.
We don’t expect the numbers to influence, however. The market focus will be on the FOMC monetary policy decision, projections, and the press conference.
Key areas of focus will include the timing and size of a tapering of the asset purchasing program and interest rate projections. Will the FED be looking to lift cash rates earlier than previously expected?
On Tuesday, the U.S Dollar Spot Index fell by 0.08% to end the day at $93.204.
For the Loonie
It’s a quiet day ahead for the Loonie. There are no material stats due out of Canada to provide the Loonie with direction.
Crude oil inventories and market risk sentiment will remain the key drivers on the day.
Political uncertainty, following the early election, appeared to be of little concern as Trudeau fell short of a majority.
At the time of writing, the Loonie was up by 0.05% to C$1.2814 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.