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Markets Await FOMC Decisions

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USD

On Wednesday, the Greenback held steady vs. a basket of major currencies with traders  focusing on the Federal Reserve’s policy decision and the  ADP U.S. jobs data ahead of Friday's “all-important non-farm payrolls report” .Additionally, , markets will also be searching for signs  on who might be the next Fed chair.

On the release front, U.S. Consumer confidence for September rose to an almost 17-year high while another report showed that wage growth accelerated in the third quarter.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.53 up 0.8%.

EUR

The single currency fell as much as 0.8% vs. the Greenback and settled at $ 1.1635, not far from the three-month low of 1.1573 hit late last week after the ECB said it could extend its bond purchases into September 2018.

GBP

The Sterling pound traded near two-week high vs. the U.S. dollar with GBP/USD at $ 1.3304 up 0.17%, amid anticipations that the BoE could hike interest rates for the first time in almost a decade on Thursday.

JPY

The JPY was down by 0.31% with USD/JPY at ¥114.00 due to strong U.S. data and amid rising risk appetite.

Gold

Gold prices settled high as traders are awaiting the outcome of the Federal Reserve’s meeting later in the day for fresh cues on future monetary tightening. However, the Fed is expected to leave interest rates unchanged at the end of its two-day policy meeting later the day but traders are waiting for any signals that the Fed. will resume increasing rates next month as expected. Gold Futures - Dec 17 was up 0.74% at $ 1,279.95.

Oil

Oil prices edged higher as data showed OPEC has significantly improved compliance with its pledged supply cuts and amid strong anticipations that Saudi Arabia will need oil prices to trade at about $70 per barrel in the next year. Crude Oil WTI Futures - Dec 17 rose as much as 1.23%, to settle at $55.05 and Brent Oil Futures - Jan 18 was up 0.90% at $61.49.

Economic Calendar (all times in GMT)

  • CAD Markit Canada Manufacturing PMI (OCT): (GMT 13:30) – Important – Forecast (N/A) – Previous (55).
  • USD ISM Manufacturing (OCT): (GMT 14:00) – Important – Forecast (59.4) – Previous (60.8).
  • USD ISM Employment (OCT): (GMT 14:00) – Important – Forecast (N/A) – Previous (60.3).
  • USD FOMC Rate Decision (Upper Bound) (NOV 01): (GMT 18:00) – Important – Forecast (1.25%) – Previous (1.25%).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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