US Stocks Dips On Dovish FOMC
US stock indices finished the day in the black after Fed minutes confirmed the dovish view on policy from the FOMC for 2019. It had been another mixed day in the market with investors still searching for the next push one way or the other and the majority of products are trading at familiar levels on the Asian open this morning.
Dollar Index Weakened, Dvosih FED & ECB In Focus
The dollar edged lower over the day, Dxy at 96.90, after experiencing some volatility on the ECB meeting when Euro dipped then recovered but on the whole currencies were relatively stable. The pound as usual probably has the highest propensity to move as tomorrows Brexit deadline looms and EU leaders continue to debate what kind of extension they would like to propose.
Crude Oil Bearish, EIA Report Plays
As per the US Energy Information Administration (EIA), crude oil output is anticipated to increase by 1.43 million barrels per day (bpd) in 2019 to average 12.39 million bpd, up from its previous forecast for a rise of 1.35 million bpd. Oil continues to hold to levels near recent highs of $64.60.
Brexit Continues to Influence Sterling
Once again sterling traders are probably the most on edge as Brexit approaches it’s latest deadline, and the EU appears to be pushing back against the UK’s request for a short extension.
The dynamic in the market has changed now in that a longer extension will probably see more pressure on the pound as this will increase the risk of further political instability in the UK, possibly leading to a leadership change, a general election or a second referendum.
What’s Next Today?
Looking ahead to today’s trading and the main focus of the European and US session will be the latest release of the PPI and Core PPI data from the US economy.
The London session will be dominated by Brexit commentary yet again, and there is little in the way of data releases to interrupt this.
Into the New York open and traders will be looking closely at the latest PPI numbers out of the US before a raft of FOMC members hit the news wires including Clarida, Williams and Bullard. Stay tuned for technical analysis and forex trading setups.
Have a good day!