Today’s news (GMT 3):
- 16:30 USA: Consumer Price Index (MoM) (Nov).
- 18:30 USA: EIA Crude Oil Stocks Change (Dec 6).
- 22:00 USA: Fed Interest Rate Decision, FOMC Economic Projections.
- 22:00 USA: Monthly Budget Statement (Nov).
- 22:30 USA: FOMC Press Conference.
In the end, the drop in value we expected to see did not materialise. This was down to the news backdrop working against the USD.
In Asian trading, the EURUSD pair is trading in the red, and at the time of writing, the euro is valued at 1.1088. It is also worth noting that in the early morning, GBP fell 90 points. This was down to the publication of a new YouGov poll ahead of the UK general election. According to the poll, the Conservatives Party now looks set to win 339 seats instead of the 359 predicted on November 27th. Meanwhile, the Labour Party stands to win 231 seats, which is 20 more than previously thought.
Both traders and investors are playing it safe in anticipation of the meetings of the US Federal Reserve, the ECB and the UK general election.
The next scheduled two-day meeting of the US Federal Reserve Open Market Committee began on Tuesday. The base rate of interest is expected to remain unchanged. At the end of the meeting, the bank's management will present its forecasts as regards the development of the US economy for the next calendar year.
Today’s review comes without a forecast as we await Jerome Powell’s press conference after the FOMC meeting later in the day.