Markets Await The Fed

Morning Report: 08:45 London

• This morning markets are keeping a watching brief as well they might with the Bank of England releasing the voting patterns from its last meeting and the FOMC providing its latest guidance on interest rates and QE. The Fed announcement and following press conference is the big show today so markets could be slugging until this point.

• So far today, we’ve seen the NZD/USD push back towards recent highs, while the AUD/USD recovers from yesterday’s heavy selling.                                             

• Elsewhere, the yen is recovering, helping the main yen pairs such as the AUD/JPY to lift higher this morning.

                             
                                                                                                                                                       
                              
                             
Coming up today:

• The main items today are the aforementioned release of the MPC voting patterns at 09.30. On top of this, we also have MPC member Weale speaking at 12.15 and MPC member Haldane speaking at 18.30.

• Canadian Wholesale sales are at 13.30.

• The main event is the FOMC economic projections and statement at 19.00, with the FOMC press conference at 19.30.

Trade Idea:

• The pound continues to show out performance, especially with in the GBP/JPY which is helped by the recovering yen. An ‘on message’ Fed today could see the pair lift further, while no major surprises are expected from the MPC.

                             

A good way to play this is a HIGHER trade predicting that the GBP/JPY closes above 174.00 in 2 days time for a potential return of 179% if successful.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: