- Dollar dips lower ahead of the US interest rate decision
- Alabama Senate election casts doubts over further tax cuts
- Brent oil slips under $64 per barrel
The dollar is 0.12% lower against a basket of its peers ahead of the Federal Reserve’s interest rate decision.
The Fed are expected to raise interest rates by 25 basis points. While the rate hike is already priced into markets, investors will be more concerned with the road map of future interest rate decisions, which Fed chair Janet Yellen may touch on in a statement given later today.
The euro is 0.04% higher against the dollar, while the pound is 0.25% stronger against the greenback. Japan’s yen is up 0.16% per dollar, illustrating the cautious feel in equity markets.
Caution came after an election for a Senate seat in Alabama went to Democrats, reducing the majority for Republicans at 51-49, igniting doubts over future tax cuts.
New Zealand’s dollar is 0.1% stronger against its US counterpart, clutching onto gains made earlier in the week when a new governor was appointed to the nation’s central bank.
European equities are mixed after a bearish Asian session. London’s FTSE 100 is 0.26% higher, while Germany’s DAX 30 is 0.03 lower. France’s CAC 40 is 0.02% stronger.
Asian equities are pushing higher after a lacklustre session overnight. Hong Kong’s Hang Seng is 1.56% stronger and the China A50 is up 1%.
US stocks are trading upwards ahead of the interest rate decision. The Dow Jones is 0.04% higher, while the tech-heavy Nasdaq has added 0.11% to its gains.
Gold has given up 0.17% of its value, trading at $1242.
The tumultuous week for oil resumes, with Brent oil 0.1% lower after dropping 2.1% overnight. The international benchmark gained 2% on Monday and hit its highest point since mid-2015 on Tuesday.
Oil rallied earlier in the week after news that the North Sea pipeline system was closed but the International Energy Agency capped gains by saying it would release emergency inventory if needed.
The latest Crude oil inventories will be released later today.