Nervous Tension Mounting on Investors, Cautious Trading Ahead of BoJ and Fed Meetings

Wall Street is expected to open cautiously as the Federal Reserve is clearly in the spotlight for U.S investors. The Bank of Japan will deliver its Policy Rate and Outlook Report tomorrow. The Euro remains under pressure and the Pound has languished against the U.S Dollar.

Solid Growth Numbers and Fed Expectations, Trump Nomination Coming

Personal Spending and a Core Consumer Price Expenditures came out higher than expected. Personal spending rose by 1.0% compared to analysts expectations of 0.8% while PCE was released in line with expectations. Last Friday’s strong Gross Domestic Product numbers underscored the strength of the U.S economy. The Federal Reserve will release its Monetary Policy Statement this Wednesday, and President Trump is expected to name a replacement for Fed Chairwoman Janet Yellen soon. Wall Street is expected to open with some selling pressure.

Bank of Japan and Household Spending Tomorrow, Asian Market Headwinds

Retail Sales came in slightly below expectations from Japan, tomorrow the Bank of Japan releases its Outlook Report and Policy Rate. Household Spending data will also come from Japan tomorrow. The Nikkei turned in a rather flat trading session and the Yen has range traded against the U.S Dollar. Asian investors are bracing for the days to come and headwinds are not a surprise in the short-term.

European Equities Cautiously Gain, U.K. Data Proving Disappointing

European equities have opened with cautious gains, but the Footsie has seen some slight selling early. The Pound has remained above the 1.31 level this morning and has seen some buying on lows via technical support. Recent U.K data has been rather disappointing, yet many investors are gearing for a potential interest rate hike from the Bank of England this Thursday. French and German Manufacturing numbers will be published tomorrow.

Speculators Taking Positions, Tight Range Early in Gold

Gold has seen a tight range early today. The precious metal remains near 1270.00 U.S Dollars an ounce and speculators are likely taking positions as they brace themselves for global central bank developments.

Inflation Number Coming from States, Consumer Data on Table

The U.S will release its Core Personal Consumer Expenditures Price Index at 12:30 GMT and a surprise outcome could spark the broad markets.

• 12:30 PM GMT U.S., Core PCE Price Index
• 12:30 PM GMT U.S., Personal Spending

Yaron Mazor is a senior analyst at SuperTraderTV.

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