Talking Points:
• The S&P 500 is pressuring the top of its the range formed over the past six weeks
• Conviction in the general risk appetite rebound will be put to the test as Chinese liquidity returns
• Monetary policy will be a key theme ahead with the Fed and ECB minutes along with the BoE rate decision
See volume behind the majors during events like Thursday's BoE rate decision to gauge your trading approach using the free FXCM Real Volume and Transactions indicators.
Sentiment has marked a strong recovery since the Chinese markets went offline for the Golden Week holiday period. Is that happenstance and China just went on vacation at the wrong time? Or perhaps the liquidity drain from one of the more volatile region's of the financial map offered breathing room. Moving forward, we find the S&P 500 pressuring resistance in its recovery effort while USDJPY is awaiting a decisive break from week's long consolidation all while the IMF issues fresh warnings about risks ahead. For the next 24 hours, monetary policy will be an FX catalyst as the Federal Reserve and European Central Bank release transcripts of recent meetings - remarkable for keeping a warning of a 2015 hike and playing down a QE upgrade respectively - while the BoE deliberates rates. We look at the themes and catalysts for market movement in today's Trading Video.
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