Ranges Tested as Tentative Sentiment Remains, BoE Holds Rates but Hints for a Rate Hike

The Federal Reserve raised its interest rate to 1.75% as expected late on Wednesday. 

Wall Street Called to Open with Losses, Federal Reserve Surprises No One

The Federal Reserve surprised no one yesterday when it raised its key borrowing rate by a quarter of a point to the 1.75% level. The U.S Dollar however immediately grew weaker in forex, as investors acted relieved when the U.S central bank outlined the probable need for only two more hikes the remainder of the calendar year. Wall Street which saw slights declines yesterday is being called to open lower via the Futures Markets. Asian equities were mixed today with Japan producing gains, but with losses on Chinese exchanges. Tomorrow’s Core Durable Goods Orders data from the U.S could add an intriguing element to investor sentiment before going into the weekend, this as the Fed made it clear it will put more emphasis on current economic data rather than long-term forecasts.

European Data Comes in Lackluster, Retail Sales Improve in U.K

Manufacturing readings from the European Union missed targets in France and Germany. And Services Purchasing Managers Index data was also lackluster for the E.U.However, Retail Sales figures from the U.K proved stronger than anticipated with a gain of 0.8% compared to the expected result of only 0.4%. The Bank of England has kept its monetary policy in place as expected today. And the Euro and Pound have essentially range traded early versus the U.S Dollar as traders evaluate their short-term positions. Late tonight Japan will release its Core National Consumer Price Index inflation statistics which could prove interesting, particularly as the Yen maintains its strong position against the U.S Dollar near 105.65.

Precious Metal Adds Value as Dollar Slides, Active Gold Market Expected

Gold is near 1330.00 U.S Dollars an ounce. The precious metal has added value as the U.S Dollar has weakened in forex. However, Gold is near important resistance levels which have proven strong the past month, and speculative action will prove active today and tomorrow for the commodity.

U.S Manufacturing Figures Coming, Japanese Inflation Data Late Tonight

Manufacturing Purchasing Managers Index numbers will come from the States at 13:45 GMT and generate interest among investors.

• 13:45 PM GMT, U.S, Flash Manufacturing PMI
• 14:30 PM GMT, U.S, Natural Gas Storage
• 23:30 PM GMT, Japan, National Core CPI

Yaron Mazor is a senior analyst at SuperTraderTV.

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