The US Federal Reserve will be holding a policy meeting tonight and is widely expected to leave its interest rate unchanged.
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There is a very big event due today - a policy meeting of the US Federal Reserve. While the Fed is strongly expected to maintain its interest rate at the current level of 3.75%, its Statement and Economic projections will be closely scrutinized for clues as to the Fed's future moves. This data can move markets, especially the US Dollar and the US stock market.
Stocks fell yesterday but have rebounded almost everywhere during today's Asian session, as risk-on sentiment remains essentially improved. The Japanese Nikkei 225 Index made a new all-time high price earlier, and trend traders will want to be involved here on the long side.
Crude Oil remains very weak, with WTI reaching a new 3-month low price, trading below $75 with some momentum. The falling price of crude oil is giving a tailwind to improving risk-on sentiment.
Precious metals like Gold and Silver are holding up but doing little after their recent recoveries.
Bitcoin seems to have found some support at around $60,000 and is now making a bullish consolidation above $65,000.
In the Forex market, the USD/JPY currency pair is doing little following last week's bullish breakout, although trend traders will still be long of it. It is still holding up despite the Yen's gains. The US Dollar Index is looking a bit weak - a stronger bearish breakdown might set up later today.
There will be a release today of UK CPI (inflation) data, which is expected to show an increase from 2.8% to 3.0% on an annualised basis.
There are no more high-impact economic data releases scheduled for today, but with the US Federal Reserve's policy meeting and UK inflation data due tomorrow, we can expect markets to show some life today and tomorrow, even if directional movement in the USD might be restrained.