Fed Interest Rate Hike Decision today! What to expect from the markets?
FX Markets Steady, FOMC In Focus.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
With all eyes on the Fed, FX markets remained somewhat subdued closing yesterday’s session relatively flat.
Fluctuations of marginal change were seen in majors, yet price formed indecision candles.
This morning the markets opened slow as major economic indicators are for GB and US are due.
Today’s Forecast for Important Trading Indicators
EURUSD – EURO breaks 50 DMA amid bad German ZEW and gets rejected near $1.17. EURO confirmed Monday’s bearish formation on the daily chart and moved below the 50 DMA at 1.1756 following a bad Confidence report for both the German and European economy. The moving average is likely to provide clues onto either the continuation or reversal of the price for day traders ahead of FOMC.
GBPUSD – The British Pound surges on 6-Year record CPI, falls as inflation level is worrisome. STERLING tilted some 30 pips higher during the release of the YoY CPI report but lost its gains within the hour as investors concerns regarding raising inflation weighed in. High inflation took price to the daily opening and formed an indecision candle by day’s end. Today’s Employment figures are crucial.
USDJPY – DOLLAR holds firm above 113 following a 113.10 rejection after data played in. Dollar formed an indecision candle for a 2nd consecutive session ahead of FOMC, maintaining its bullish stance. The pair moved lower during the day due to positive Japanese figures yet managed to recover the early losses following a rejection at the support level formed on December 8. All ey
es on the Fed.
USOIL – OIL declines despite API inventory draw as investors take profits following UK disruption. OIL fell from the daily $1.7 per barrel from its daily high following a good API report on Crude Stocks as investors took profits after a price surge caused by a major Brent pipeline disruption in the UK. Gasoline Stocks show a moderate increase. Oil closed the session at $57.40 per barrel while market participants wait for today’s EIA report to be released.
XAUUSD – GOLD closes the session green following a rejection at previous 1236.00 support. Spot GOLD remained under pressure owing to the widely anticipated Fed’s hike, closing the session a tad higher than the previous day. Price moved to a daily low of $1236/oz, where price got rejected and recovered earlier losses. DOLLAR likely to set investor sentiment.
US Indexes – Both DJ and S&P 500 rose by 0.49% and 0.15% respectively.
European Indexes – UK 100 appreciated by 0.63%, DE 30 by +0.46%
Asian Indexes – ASX 200 tilted 0.16% higher, Nikkei fell by 0.47%. Hang Seng trades 1.62% higher.
US Equities – Twitter up-surged 4.50%, Tesla followed with a 4.37% raise.