It’s the Final Countdown To The US Rate Decision With Crude & Gasoline Inventories Report

By Kenneth@Xtrade - on September 26, 2018

The final countdown to today’s Fed rate decision and USD remains subdued. Largely because about 98.04% of market participants have already priced in the uptrends of the USD.

Hence the expectation is for the FOMC to hike by 0.25% to 2.25%. Should the FOMC decide otherwise, we could see a short yet steep reversal in trends.

However, if they do then the focus will be on the statements of Chairman Jerome Powell’s in is press release some 30 minutes after the release of the decision.  The keyword sort after in the adherence or exclusion from “ACCOMMODATIVE” policy.

 Global Stocks: Global stocks remain strained. Tuesday wall street fell, as China-US trade talks sour. While some of the top Tech companies testify in before Congress today namely AMAZON, GOOGLE, APPLE, and CHARTER-Communications. Meanwhile, Asian shares were bolstered by Chinese Insurance, Technology Hardware & Equipment, as well as the Banking sectors, help push stocks in the limelight. China also announces a stimulus package to provide enough liquidity for small to medium-sized companies. The EU shares displayed mixed signals ahead of the fed rate decision, by the time of print 08:41 GMT,

  • Germany30 Sails the tide with lows and highs ranging from 12,337.62 – 12,402.22 the automakers weighs on uptrends as US-China talks hit a snag
  • France40  Was mostly bullish rallying 0.14% to 5,486.87 and trading between 5,471.57 – 5,490.88
  • Italy 40 Shed 0.09% 21,570.00 and range in a range bound from 21,615.00 – 21,505.00
  • UK100 Was ranging in a  sideways trajectory from  7,490.25 – 7,513.25 at 7,507.31 jumping in and out of gains.

Commodities:

  • WTI crude: Despite US President Trumps’ punches at OPEC at the UN on Tuesday WTI Crude oil prices were not frazzled. Ranging between 71.84 – 72.38 ahead of today’s Crude Oil and Gasoline inventories report. Which could be impacted by economic data release from the US on Home Sales and the rate decision.
  • Gold prices remained downtrodden some analysts had expected to see the Gold prices rise as a contingency should the feds fail to hike rates however as of the time of print the Gold spot was bearish down 0.13 % swinging between  1,203.20 – 1,206.90.
  • Currencies
    EUR/USD  is capricious sensitive both to ECB’s Tapering plans and the Fed’s intentions coupled with activities in the Euro Area. The pair were seen between 1.1757 – 1.1776 down 0.02%
  • GBP/USD was caught ranging from 1.3191-1.3152 and bearish in its outlook as concerns of the Brexit is elevated.

Cryptocurrencies: It could be argued that the crypto arena is slightly positive as most of the tokens reversed loses.

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