Yesterday’s Federal Reserve meeting minutes proved to be dovish. It looks like the Fed finally got the message from the market as well as Trump and eased its language, heading into what’s likely to be a turbulent year for financial markets. Last night’s snapshot of Fed thinking was miles apart from the rhetoric delivered by Fed chair Powell at the 19th December announcement. It’s now clear, a 7% drop in stock markets, 10% drop in the price of oil and a huge amount of Fed bashing from President Trump is enough to have them re-evaluate their projected course.
The reaction from markets was as one could expect from a dovish Fed, the US dollar softened while equity markets continued to be propped up despite a huge rally to begin the year. All appears well and good again…for now!
Today’s economic calendar is a busy one. Continuing on the Fed front, Jay Powell is due to deliver a speech today and we’ll also see 5 of his colleagues deliver speeches too. This is a significant amount of Fed speakers, so the greenback will definitely be in focus across the afternoon and evening session. In addition we’ll have the latest round of meeting minutes from the European Central Bank, following on from their decision to end their massive multi-year bond buying program.
Written by Viv Savani. 8:38am, January 10th 2019
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8:39am, August 6th 2019
Stock markets plunge as US/China tensions overheat, FX remains relatively calm…