Today, investors will be sitting on the edge of their seats in anticipation of the FOMC decision. No change in policy is expected, so all the action may come from the statement. In Australia, CPI data for the last three months of 2017 missed estimates, pushing the Aussie lower.
The Financial Community Locks Gaze on the FOMC Decision
The dollar turned down again on Tuesday, underperforming all but two of its major peers, with no signs of reaction to President Trump’s State of the Union address. The main gainers were GBP, NZD and NOK in that order, while the greenback traded virtually unchanged against JPY and AUD.
Today, all lights will fall on the first FOMC monetary policy decision for 2018. The forecast is for no change in policy, something supported by market pricing as well. According to the Fed funds futures, the implied probability for the Committee to keep rates unchanged is around 95%. This is one of the “smaller” meetings that is not accompanied by updated economic projections or a press conference by the Fed Chair and thus, all the attention will turn to the statement accompanying the decision.
Another point to be made is that this would be the last meeting headed by Janet Yellen.
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