Fed announcement and UK inflation today’s highlights…
One could be forgiven for believing stock markets have been trying to send a clear message to the Fed that they should not increase interest rates for a 4th time this year. The volatility across global stock markets has been overwhelming these last few days with a number of US indices set to have their worst December since 1980! The dollar has be taking its cue from stocks by showing a mild bout of weakness as participants anticipate a more dovish Fed. Tonight’s announcement and press conference is the most eagerly anticipated Fed event in 2018 and most likely 2017 too. Tweets from President Trump have been relentless – asking for the Fed to “Feel the market, don’t just go by meaningless numbers.” Very insightful! Whatever happens tonight it’s certain they’ll be a lot of volatility to accompany it. If the Fed end up maintaining their current hawkish stance we may well be revisiting the $1.25 support level once more.
Elsewhere, UK inflation numbers will be closely eyed. Even though Brexit is the number 1 issue when considering the pound, this report still carries huge weighting in the Bank of England’s eyes and therefore can create market movement. Additional reports to pay attention to include Canadian inflation data, US existing home sales and New Zealand GDP.
Written by Viv Savani. 8:48am, December 19th 2018
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8:39am, August 6th 2019
Stock markets plunge as US/China tensions overheat, FX remains relatively calm…