Markets Quiet Ahead 

Of FOMC & Budget

Morning Report: 09.00 London

• This morning, the S&P 500 is treading water as traders hold back ahead of today’s FOMC meeting with a similar effect in the UK due to the budget.

                                                                                                                                                                                 

• The dollar index is holding at the highs, helped by a renewed slump in oil prices which have now hit their lowest level since 2009.

                          

                          
                       
• Commodities are on the back burner, contributing to renewed pressure on commodity currencies such as the AUD/USD, NZD/USD and AUD/JPY.
             
                              

                          

          • The euro continues to rise, outpacing the pound in particular.                                                                          
                            

                             
       
             • Gold continues so suffer as part of the general commodity purge.

Coming up today:

• Coming up today, we have UK earnings & claimant count data released alongside the voting patterns from the last MPC meeting. The big release for midday is the UK annual budget release at 12.30.

• Canadian Wholesale sales are out at 12.30.

• Then we switch to the US for the day’s main ticket, the FOMC projections and statement at 18.00.

Trade Idea:

• It’s a huge day for the US dollar, but the Canadian dollar could have some moves of its own with wholesale sales due at 12.30.

• With oil prices continuing to slump, there could be renewed pressure on the Canadian dollar, causing more upside for the USD/CAD.
                         
A good way to play this is a HIGHER trade predicting that the USD/CAD will close above 1.2850 in 7 days time for a potential return of 134%.

                         
                             

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