Fed Expected to Keep Risk Appetite Running After ECB, Trade Wars
The Australian Dollar has benefited as markets remain hopeful that the US and China are getting closer on trade and as central banks dial up the stimulus.
Crude oil prices may be under pressure if Fed Chairman Jerome Powell cools aggressive rate cut bets against the backdrop of deescalating Iran tensions – at least for now.
The Federal Reserve meeting is likely to influence the near-term outlook for the US Dollar as the central bank is widely expected to deliver another 25bp rate cut.
The ECB cut rates and re-booted QE Thursday, but the single currency ended the day higher across the board. It may prove difficult for the Euro to remain at these elevated levels going forward.
A strong week for equity markets as easing geopolitical (US/Iran) and trade (US/China) tensions support risk sentiment, and not to forget open-ended QE from the ECB to provide a helping hand.
Gold prices may fall as a monetary policy announcement from the Federal Reserve underwhelms financial markets’ ultra-dovish interest rate path outlook.
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