Investor focus on Powell's first Federal Open Market Committee (FOMC) meeting since President Donald Trump appointed a new Fed chairman in November. Investor thinks that Powell will raise the first interest rate rising of 2018 on Wednesday. In my opinion, if Powell says that the economy is strong and would suggest higher interest rates are coming, it would cause the steady greenback but weaker stock market.
Great Britain Pound rose up after U.K. can stay in EU till 2020 on Tuesday. Today pound may hold steady supporting by earning index of January and claimant count change of February at 16.30 p.m. which may express the strong labor market of the United Kingdom. I think average earning index which predicts higher may give positive for currency and stock market while claimant count change is still low and it may lower than -5000 positions because the unemployment rate forecast unchanged at 4.4%.
In my view, U.S. dollar may try to hold steady before the Fed meeting and economic indices: existing home sales at 21.00 p.m. may give positive for greenback, if it is higher than 5.41 million while crude oil inventories at 21.30 p.m. may directly affect to oil price and it may support Brent stand tall, if U.S. crude oil stock reduce lower 3.182 million barrels.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.