The Federal Reserve’s interest rate decision will be announced later today. While the Fed are expected to keep interest rates unchanged, investors will be listening out for any clues as to when the body will start to reduce its balance sheet.
The dollar will bow to the rhetoric of Janet Yellen’s speech, so watch out for increased volatility in the currency. For now, the greenback is tipping upwards.
Yesterday, the euro tipped above $1.17 for the first time since 2015. The currency is winding down now, losing some of those gains.
Possible bearish movement towards 1.1618 supported by a downward sloping moving averages curve.
The Aussie dollar weakened after the second quarter inflation reading came in under expectations. Forecasts were at 0.4% and the actual came in at 0.2%.
The British pound dropped 0.1 after expansion of the US economy met analyst’s expectations of 0.3%.
The pattern is still in the process of forming as the pair is trading in a very tight range.
The broad rally in equity markets underpinned gains in European and Asian equity indexes. Earnings season has, so far, delivered on investor’s high expectations. 80% of the S&P 500 companies have beaten forecasts, supporting the recent rally in equity markets.
Oil rose above $48 for the first time since early June. Brent oil, the international benchmark, rose 0.8% after increasing 3.3% on Tuesday. The rally came after Saudi Arabia vowed to decrease exports in August.