Most European markets ended the day lower on Tuesday. However, the euro rose again versus the US dollar for a second day. It also gained as much as 1% against the British pound, which is under pressure from the political uncertainty on the parliamentary elections outlook. Euro zone creditors were frustrated as Greece refused to update them on its reform progress at a scheduled teleconference, and insisted to talk about it at the EU summit on Thursday.
The Bank of Japan maintained its stimulus program once more on Tuesday and stressed that a steady economic recovery helps reach its price target without further monetary easing. Governor Kuroda admitted that core CPI may turn negative for a while. However, this brief drop won’t hurt the price uptrend as inflation is mainly driven by the sharp falls in oil prices.
US crude oil reached a three day losing streak on Tuesday as fears rise for a buildup in inventory ahead of the official data. Expectations are that inventories will rise for a 10th week straight. As the Fed FOMC meeting approaches, the US dollar held steady early on Wednesday. The Fed Statement is due at 18:00 GMT, followed by a press conference with Chair Janet Yellen 30 minutes later.