Summary:

• Stock markets and the US dollar are retreating ahead of the Fed decision
• Pound holds its post-labour data gains before the Bank of England meeting
• Oil prices are moving higher in anticipation of a DoE weekly release

Equity investors seem to be cautious with regard to piling into stocks ahead of the Federal Reserve meeting where a rate hike is broadly anticipated. Being in the midst of the trading day European stock markets are dribbling lower, however, declines have not been significant thus far. While a bit more than an hour left before trading on Wall Street kicks off one may notice that SP500 futures suggest a slightly red opening.

As far as the FX market is concerned, the Canadian dollar is maintaining its early gains following upbeat comments coming from NAFTA talks. According to the Canada’s Globe and Mail the Trump administration scrapped a demand that all vehicles made either in Canada or Mexico for export to the US need to contain at least 50% of US content. It’s been one of the toughest demand and a key roadblock to make a new trade deal between three countries. On the other hand, the NZ dollar remains on the back foot as it was in the morning in the aftermath the lacklustre migration and dairy releases. In turn, the British pound is benefiting from the splendid labour market report which was above expectations in every aspect – job creation, unemployment rate and wages. Unsurprisingly the GBP is surging on the news, just a day ahead of the BoE meeting. On the commodity front, oil prices keep enjoying the yesterday’s API calculations suggesting an unexpected draw in stockpiles. If a fall is confirmed by the DoE later today, it would push the commodity price higher. That said, crude prices might be subject to heightened volatility in the evening due to the Fed decision.

The G20 summit taking place in Argentina was believed to be the relevant event for cryptocurrencies and one may acknowledge that it was, however, just a little details have been released so far. According to governor of the Argentina’s central bank “the spirit of the discussion was very productive, and I agree that everybody left very pleased”. It needs to be said that crypto talks took place behind a closed door on Tuesday.

Wednesday abounds in an avalanche of crucial macroeconomic readings as well as central bank meetings. It suggests that we’re going to experience the session being full of price swings and thereby offering many trade opportunities. Let us come forth with the macroeconomic calendar for today.