While the market waits on the outcome of today’s FOMC Meeting, the main focus on Tuesday was on Donald Trump’s belligerent speech to the UN although there were no major market ramifications emanating from that, so traders will now largely sit on their hands while waiting for the Fed to give a clearer vision of the start of the balance sheet reduction program. EurChf briefly reached levels last seen in Jan 2015 following a strong German ZEW figure, while the Aud and Kiwi both remain firm due to improving strong risk appetite, while Sterling regained some minor ground after the dip following BoE Governor Mark Carney’s cautious speech yesterday. Stocks crept to another all time high, while Gold and Silver were both a touch higher and WTI is back above 50.00pb.
As for the coming session, there is a little bit to watch ahead of the FOMC outcome. Japan will release the adjusted trade balance for August, while in Australia we get the WBC Leading Economic Index. Later on, the ECB Non – MP Meeting minutes will be released but are not expected to create any waves and more focus may lie in the UK Retail Sales for August (exp 0.2% mm, 1.1% yy). From the US, ahead of the FOMC, the Existing Home Sales (exp +0.3% mm, 5.46 mio) and the EIA Crude Oil Stocks Weekly Change (exp 2.295 mio) will be the focus. The Fed will keep rates on hld but will announce the start of the BS reduction programme and, while largely written in, I suspect could induce some dollar buying
The levels in this table are a guide only.
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|ASX SPI: 5714|