Today is FOMC day out of the US, the biggest talking point should be inflation and how it will adjust the Fed’s expectations for an increase in interest rates. What we do know is that the much anticipated stimulus bill is in the market, how the influx of capital will affect the inflation outlook would be the major question that needs to be answered by Powell tonight.
With FOMC data pending the USD has been very neutral and should continue to be until the necessary questions are addressed tonight. There seems to be more EUR strength as it gains on JPY as well as CHF. JPY continues to weaken against the major pairs with its Monetary Policy Statements approaching the latter part of the week. GBP similar to the USD is pending Monetary Policy Statements due to be released tomorrow.
It was a mixed for the US indices Nasdaq rallied but sold off in the latter part of the US session giving back half the gains it made, Dow sold off on the negative Retail sales figures that came in significantly lower than the forecast.
The pending FOMC meeting has resulted in a lack of movement in the commodity market, as we wait on the inflation debate continues, Gold is range bound struggling to break 1740, similarly Brent is struggling to get any clear direction as its holding $68.
2:30pm - CPI m/m (CAD)
4:30pm - Crude Oil Inventories (USD)
8:00pm - FOMC Statement (USD)
8:00pm - FOMC Economic Projection (USD)
8:00pm - Federal Funds Rate (USD)
8:30pm - FOMC Press Conference (USD)
11:45pm - GDP q/q (NZD)