mask Dollar takes Center Stage after 3rd Rate Hike for 2018

27/ 09/ 2018

Dollar takes Center Stage after 3rd Rate Hike for 2018

Daily Update - 27th September 2018

Yesterday’s Markets

  • Euro Non-Monetary Policy Meeting
  • USD Fed Interest Rate Decision & Jerome Powell’s Speech

Yesterday’s Explained

On Wednesday, the focus of the week with major Reports coming out from ECB on Non-monetary policy, U.S. Federal Reserve Interest Rates & Jerome Powell’s speech. EU Non-Monetary Policy meeting subsided since all focus shifted back to U.S. Federal Reserve Interest Rate decision & Jerome Powell’s speech later on. 

The Fed raised its target overnight rate to a range of 2 percent to 2.25 percent, up from 1.75 percent to 2 percent. The central bank also upped their outlook for U.S. economic growth this year and next. Finally, the Fed dropped the word “accommodative” from its statement in how it describes its monetary policy.

That move raised the most questions with some traders saying this likely means that the Fed no longer believes its policy is accommodative, and it’s likely closer to being done with its rate hikes. The initial price action suggested the market first interpreted the word’s removal as “the end of the Fed tightening cycle.” However, Powell said the removal of that word does not signal any change in the bank’s path toward normalizing monetary policy

 

Today’s Markets

  • US OPEC Meeting, Gross Domestic Product & Initial Jobless Claims
  • ECB President Draghi Speech
  • Bank of England Mark Carney Speech

Today’s Focus

Thursday will be busier than Wednesday since there are two major Speech from ECB President Mario Draghi & Bank of England Mark Carney. Both being influential members of the Euro Zone & UK cues will be a highlight on their current economic conditions & their future projections towards a stable economy.

Followed by US will release their Gross Domestic Product figures which will be a key indicator of the current condition including their Job Market conditions.