Markets Await Fed Policy Decision

USD

On Wednesday, the Greenback fell slightly vs. its major peers, as market players remained cautious ahead of the U.S. Federal Reserve's policy decision for clues on the future path of interest rates. The Federal Reserve is widely expected to raise interest rates at its a two-day policy meeting that will end today and is currently seen tightening two to three times next year, but worries over tepid inflation could change expectations for 2018.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.11% 93.997 pips.

EUR

The Single currency rose as much as 0.07% vs. the Greenback, to settle at $1.1750, settling above the previous day’s three-week low of $1.1716.

GBP

The Sterling pound rose as much as 0.21%, to settle at $1.3346, after an official data showingthat the UK unemployment rate was unchanged at a 42-year low in the three months to October 2017, compared with the previous quarter.

JPY

The JPY rose as much as 0.12% vs. the USD to settle at $113.42. On the release front, traders are awaiting Japan Buying Foreign Bonds.

Gold

Earlier today, Gold prices rose slightly, but stayed near their lowest level in five months as traders are awaiting the conclusion of the Federal Reserve's policy meeting, at which it is widely anticipated to hike interest rates by a 0.25% point. Gold Futures - Feb 18 (GCG8), rose as much as 0.11%, to settle at $ 1,243.10.

Oil

Oil prices traded high as an official data showed a larger-than-expected decline in U.S. crude inventories, while anticipations for an extended shutdown of a major North Sea crude pipeline also continued to support oil markets.

The most important economic events:

• USD Consumer Price Index (YoY) (NOV): (GMT 13:30) – Important- Forecast (2.2%) – Previous (2.0%).
• USD Consumer Price Index Ex Food and Energy (YoY) (NOV): (GMT 13:30) – Important- Forecast (1.8%) – Previous (1.8%).
• USD FOMC Rate Decision (Upper Bound) (DEC 13): (GMT 19:00) – Important- Forecast (1.50%) – Previous (1.25%).
• USD FOMC Rate Decision (Lower Bound) (DEC 13): (GMT 19:00) – Important- Forecast (1.25%) – Previous (1.00%).
• USD Yellen Holds Press Conference Following FOMC Meeting: (GMT 19:00).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.