Market Steady Ahead of Wednesday’s FED Meeting
In today’s fundamental analysis: we see a quiet Monday in terms of economic news releases. Hence the market will continue to focus on the outcome of Thursday’s UK election which did not help the British pound and the French election. The main event of this week is the Federal Reserve (FED) meeting on Wednesday. Although the meeting is always considered an important economic indicator, this time it is expected that the FED will raise rates.
- With the rate hike taken for granted, Investors’ focus will be on any fresh hints on the pace of further tightening in the months to come and next year, and any further details on its plans for trimming its balance sheet.
- GBP steadied at 1.2763 following Friday’s 2.5% slide after no party won a clear majority in the UK elections. Negotiations on Britain’s exit from the European Union are due to start next Monday.
- The dollar held steady at 110.29 yen, having retreated from Friday’s one-week high of 110.815 yen.
- Gold prices fell in Asia on Monday to 1266.35. Last week, gold prices fell for a third day on Friday as the stronger dollar weighed after British elections failed to deliver a clear majority for Prime Minister Theresa May, sending sterling sharply lower.
- In commodities, crude oil prices extended gains after rising on Friday when a pipeline leak in major producer Nigeria overshadowed supply worries weighing on the market. U.S. crude and Brent were both 0.6 % higher at $46.10 and $48.45 a barrel, respectively.
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