- All your Fed previews in one place
- Italian bond yields rise after S&P revises outlook to stable from positive
- Physical flows through Nord Stream 1 pipeline fall as expected
- Germany August GfK consumer sentiment -30.6 vs -28.9 expected
- Switzerland July Credit Suisse investor sentiment -57.2 vs -72.7 prior
- US MBA mortgage applications w.e. 22 July -1.8% vs -6.3% prior
Markets:
- EUR leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.9%
- US 10-year yields up 1.1 bps to 2.797%
- Gold up 0.3% to $1,721.93
- WTI crude up 1.2% to $96.14
- Bitcoin up 1.6% to $21,318
European morning trade today featured the usual pre-Fed lull although the dollar did ease slightly while equities are looking fairly optimistic after the declines yesterday. German and French consumer sentiment continue to show further signs of deterioration as the economic outlook for Europe remains bleak.
US futures were higher since Asia trading and have held on to gains, keeping steadier and looking to erase the drop from yesterday. Despite the rebound, it will all come down to the Fed today to see how the remainder of the week will play out.
As for the dollar, some positioning flows ahead of the main event is seeing it slip a little but key technical levels continue to hold up as they have since the end of last week.
EUR/USD moved up from 1.0135 to 1.0171 while GBP/USD nudged higher from 1.2050 to 1.2087 during the session, both keeping within the ranges seen in the past few days.
USD/CAD also nudged lower to 1.2848, down 0.3% on the day, but is still seeing support around 1.2815-20 intact. Meanwhile, AUD/USD recovered from a 0.6912 to move up to 0.6950 currently though still keeping below the 50.0 Fib retracement level at 0.6982 and the 0.7000 mark.
The bond market is a key spot to watch in any post-Fed reaction but isn’t showing much appetite on the day with Treasury yields little changed.
This article was written by Justin Low at www.forexlive.com.