Market Snapshot – All Eyes on the FOMC

Euro Bounces As Catalonia Backs Down

The euro has been saved for the time being as Catalonia backed down from its call for independence. The referendum that took place in Catalonia a few days back had called for the state to become an independent country, free from the control of Spain, and this had placed the euro under pressure over the last few days. The euro could not make much progress despite the weakness in the dollar and the stock markets were also under pressure. But the President of Catalonia backed down from that call yesterday and chose to wait it out and see. This proved a huge relief for the euro which has since been pushing higher as the market awaits the next piece of news which is likely to determine the short term direction.

Market Awaits FOMC

That piece of news is likely to arrive later tonight when the FOMC minutes are released from the US. It is likely to be a crucial piece of news as the market would be watching to see if the Fed members still think that a December rate hike is on the table. Those hopes have taken a beating over the last few days as the NFP data came in much weaker than expected and without the support from some strong data, it would be difficult for the Fed to hike rates within this year. Traders can rest assured that there would be a lot of volatility surrounding this piece of news.