mask Brexit and the FED in Focus

20/ 03/ 2019

Brexit and the FED in Focus

Daily Update - 20th March 2019

Yesterday’s Market

  • GBP ILO Unemployment Rate

  • EUR ZEW Survey

Yesterday Explained

Most currencies remain within well-trodden trading ranges before the Fed decision, as market participants were cautious after taking cues from U.S. data offering new signs the world’s top economy is on a path of slower growth

Euros seems to be on the up and up with ZEW Survey coming out positive and boosting the Euro against the Dollar while Sterling Pound suffers and being Unstable right now with further News flashing that there is no orderly Exit for Britain with Theresa May’s current plans.

Today's Market

  • GBP Consumer Price Index
  • EUR Producer Price Index
  • USD FOMC Economic Projections, FED’s Monetary Policy Statement, Interest Rate Decision, FOMC Press Conference

Today’s Focus

Investors’ immediate focus was on the Fed to see whether the central bank will affirm its commitment to “patient” monetary policy and for clues about the likely path of U.S. borrowing costs.

The Fed is due to make its rate announcement at 1800 GMT on Wednesday and is expected to keep its benchmark overnight interest rate unchanged. No changes to the ongoing policy are expected, but given that the central bank will offer fresh economic projections, action is granted. The market is anticipating some downgrades, particularly referred to future rate hikes, the main reason why the greenback remains on the weak side.

Most currencies remain within well-trodden trading ranges before the Fed decision, as market participants were cautious after taking cues from U.S. data offering new signs the world’s top economy is on a path of slower growth