Broad Markets Brace for the Fed’s FOMC Report, US Futures Point Higher
Global investors will examine the U.S Federal Reserve’s FOMC Meeting Minutes carefully upon publication. Forex, equities and commodities are certain to react to any surprises from the outlook the Federal Reserve delivers via its report. Wall Street produced a flat trading session on Tuesday, but Retail Sales numbers were solid.
U.S. Dollar Firm Early, Economic Data Improves in States
Retail Sales numbers from the U.S produced solid statistics on Tuesday. The reports signal U.S consumers remain confident about the U.S economy. Also, the Empire State Manufacturing Index roared higher. However, the Federal Reserve continues to focus on inflation. Wall Street produced a rather flat trading session yesterday. Today’s FOMC Meeting Minutes will be watched closely by global investors for hints about changes in monetary policy to come. The U.S Dollar has been firm in early trading today.
Good Data from Britain, Pound Needs to be Watched
The Euro and Pound have seen their values tested against the U.S Dollar in early trading. Italian Gross Domestic Product number met their expectations earlier, while the U.K.’s Average Earning Index came in stronger than forecasted with a gain of 2.1%. The number counters yesterday’s weaker inflation numbers via the Consumer Price Index, and could set the tone for an intriguing day of trading with the Pound against the U.S Dollar. The employment numbers from Britain on a whole this morning proved impressive.
The Euro-zone Gross Domestic Product readings came in slightly higher than economists forecast reflecting 2.2% growth year over year.
Asian Markets Produce Mixed Trading, Yen Holds its Value
Asian Indexes turned in mixed results today. After Tuesday’s gain across the major equity exchanges, the Nikkei and Topix produced slight losses today, along with the Shanghai Shenzhen composite. However, the Hang Seng continued to put in gains and is 3.8% higher the past month of trading. The Yen has traded in range against the U.S Dollar ahead of the Fed’s Meeting Minutes report later today. Trade Balance numbers will come from Japan early on Thursday.
Speculative Elements in Force, Traders Brace for Crude Oil Report
Crude Oil Inventories will come from the U.S today. The commodity has remained under pressure, but has climbed slightly in value the past day. The 48.00 U.S Dollars a barrel level remains an important juncture. Speculative elements have been strong in Crude Oil the past week and traders should be prepared for the potential of volatility.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
