The market is enthralled by US president Donald Trump. The president is the first in history to follow his campaign promises to the letter. As investors digest the profound changes Trump has made, attention has turned to the Federal reserve interest rate decision happening later today, pushing equities upwards.
The dollar tumbled in the beginning of the week, as Trump’s leading advisor accused other countries of manipulating their currencies. As well as investor’s concern surrounding Trump’s protectionist policies.
The greenback was weighed even further down yesterday, following an underwhelming US consumer confidence data.
Equities are recovering after a two-day losing streak, inspired by Donald Trump’s immigration policies. The dollar is making gains as investors position their trades ahead of the Federal Reserve meeting later today.
The S&P 500 is trading upwards, at $2279
The DJ 30 is moving upwards, although struggling to recapture the $20000 mark, trading at $19828
Moving over to commodities, gold is stuck on a turbulent wave this morning. The commodity is shuffling between bullish and bearish bets, as investors try to cope with the uncertainty in the market.
Central Banks are taking centre stage as they dish out interest rate decisions. The US federal reserve are up first, releasing its decision later today. The Fed are expected to keep interest rate unchanged until the second quarter of 2017. Instead, investors will be gauging just how positive the Fed are about the underlying fundamentals of the US economy.
It’s the Bank of England’s turn to release interest rates on Thursday. The BOE are not expected to raise rates until the effects of Brexit are better known. However, inflation is on the horizon for the United Kingdom. Therefore, the BOE may be inundated with inflationary pressures, forcing the bank to raise interest rates.