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Jeff Sessions Testimony Today and Federal Reserve Decision Tomorrow

By:
Yaron Mazor
Updated: Jun 13, 2017, 12:50 UTC

Hello traders. Today's top stories: Events in Washington D.C will be the focus as Congressional testimony continues this afternoon, and the Federal

Washington

Hello traders. Today’s top stories: Events in Washington D.C will be the focus as Congressional testimony continues this afternoon, and the Federal Reserve steps into the limelight tomorrow. It’s Tuesday, June the 13th and here is our New York review.

Dow Jones Industrials Sitting Above 21,200

Wall Street turned in fractional losses on Monday, following mixed trading before going into the weekend. Investors have reasons to be cautious. Testimony in Washington awaits and is sure to stir short term trading sentiment, particularly if there are any surprises from Attorney General Jeff Sessions today as he deals with questions regarding the Trump administration. However, a bigger focus for investors is tomorrow’s Federal Reserve interest rate announcement and Monetary Policy Statement which are on the schedule. The Dow Jones Industrials is still sitting above the 21,200 level, which indicates investors have held onto their portfolios while waiting for political and economic risk events to unfold today and tomorrow.

Industrial Data via China Wednesday

The Hang Seng and Shanghai Shenzhen composites turned in marginal gains today. The Shanghai Shenzhen equity exchange is up over 5% the past month. Early tomorrow morning, Industrial Production numbers will come from China. The Nikkei finished with slight losses today, but the Topix Index managed to put in a limited climb. A Manufacturing Index reading from Japan was disappointing today, and sets the stage for the Bank of Japan on Friday. Economic data has been lackluster the past month from Japan. The Yen however has been slightly weaker against the U.S Dollar and is above the 110.00 ratio in the short-term.  The Japanese currency should be watched carefully the next few days as the global central bank story unfolds.

German Wholesale Prices Index Falls

European equities have rebounded from yesterday’s decline with moderate buying. The Footsie and Dax have both seen better investing sentiment early. The German Wholesale Price Index missed its target this morning and came in with a result of minus -0.7%. A U.K Consumer Price Index reading has also been released, but British investors are focused on the political strains within the Tory government as they try to set a course for governing. The Bank of England will release their Monetary Policy Summary on Thursday, and last week’s election result may impact their economic outlook. The Pound has been slightly positive early, but continues to languish within its weaker range. The 1.27 level looks like short term resistance for the Pound against the U.S Dollar.

Relative Calm, but Storm Coming

Gold has been relatively calm the past couple of trading sessions, but headwinds are still creating a bit of downward pressure as a central bank storm approaches. The 1263.00 U.S Dollars an ounce level appears to be short-term support. However, the precious metal will see volatility ignite within the coming day as the U.S Federal Reserve interest rate decision draws closer.

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

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