Today, the spotlight will fall on the FOMC policy decision. The market is almost certain that the Committee will raise rates by 25bps, so the focus will be on whether we get any revisions to the “dots”. The RBNZ also decides on policy, but this Bank is expected to remain on hold with no major changes in its communication.
Jerome Powell to Push the Hike Button on His Debut
The greenback traded higher or unchanged against all but one of the other G10 currencies ahead of the highly anticipated FOMC decision later today. The only currency that managed to gain against USD was CAD. The Loonie came under massive buying interest overnight following reports that the Trump administration dropped a key demand on autos off the table of NAFTA talks, removing a key roadblock towards a deal.
As for today, investors will be sitting on the edge of their seats in anticipation of the first FOMC gathering headed by Jerome Powell. This is one of the “bigger” meetings, where besides the rate decision, we get updated economic projections and a press conference by the Fed Chair.
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