Markets hold their breath Pre-FOMC

The rangebound lateral move we have seen in EUR/USD ably demonstrates the 'will they won’t they' conundrum that has had currency traders debating the start date of a US interest rate rise. 

The Federal Reserve
Source: Bloomberg

The importance of tonight’s Federal Open Market Committee meeting minutes has not been lost on traders as a willingness to sit on their hands rather than risk exposure has triggered a quieter than normal morning session.

Up until mid-morning the mining sector had been weighing on the FTSE. That was until a Goldman Sachs-inspired recovery began, with upgrades in the likes of Antofagasta, Glencore and Rio Tinto dragging the sector upwards.

Hikma Pharmaceuticals’ shares have bounced following the appeasement of the FDA with its Portuguese manufacturing facility. A year on from its initial warning the US regulators have now given the operation its approval.

Barclays' new CEO Jes Staley has been given a quick reminder of the issues facing the bank as once again historical regulatory indiscretions surface. An anticipated settlement of $100 million for the rigging of foreign exchange markets to New York financial regulators will no doubt confirm that the first cut is the cheapest. 

With the third-quarter reporting season now over there is an absence of corporate data to distract traders, but with OPEC’s annual conference in Vienna only a few weeks away this afternoon’s crude oil inventories will be watched that much more closely.

Today's FOMC minutes will be released two hours before the close of the US markets, leaving equities on both sides of the Atlantic cautious for much of the day.

Ahead of the open we expect the Dow Jones to start 30 points lower, at 17,459.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.