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17 Mar 2015
What’s Next: Markets likely to remain calm until FOMC meeting
FXStreet (Córdoba) - The dollar retreated slightly on Tuesday, weighed yet again by unexpectedly weak US data as Federal Reserve’s two-day policy meeting absorbs market’s attention.
EUR/USD rose to a high of 1.0650 after US housing starts plunged to their lowest in a year, but it failed to hold at highs and settled below 1.0600 over the last hours. USD/JPY fell to a low of 121.10 but managed to erase losses afterwards, while GBP/USD slipped back below 1.4800 with the pound underperforming versus major peers.
US stocks ended broadly lower after a choppy session as investors were wary the Fed could remove the word 'patient' from its language, paving the way to a rate hike sometime mid-year.
The Dow Jones Industrial Average dropped 0.7% to 17,850. The S&P 500 ended 0.3% down at 2,074, while the Nasdaq Composite’s added 0.1% to 4,935.
Gold settled around $1,150 after zigzagging widely, while crude oil fell below $45,00 a barrel.
During the Asian session watch for New Zealand current account figures, Australian CB leading indicator and Westpac leading index. Japan will release trade balance data and China will publish house price index. However, trading is expected to remain subdued until the FOMC statement scheduled for Wednesday 18:00 GMT.
EUR/USD rose to a high of 1.0650 after US housing starts plunged to their lowest in a year, but it failed to hold at highs and settled below 1.0600 over the last hours. USD/JPY fell to a low of 121.10 but managed to erase losses afterwards, while GBP/USD slipped back below 1.4800 with the pound underperforming versus major peers.
US stocks ended broadly lower after a choppy session as investors were wary the Fed could remove the word 'patient' from its language, paving the way to a rate hike sometime mid-year.
The Dow Jones Industrial Average dropped 0.7% to 17,850. The S&P 500 ended 0.3% down at 2,074, while the Nasdaq Composite’s added 0.1% to 4,935.
Gold settled around $1,150 after zigzagging widely, while crude oil fell below $45,00 a barrel.
During the Asian session watch for New Zealand current account figures, Australian CB leading indicator and Westpac leading index. Japan will release trade balance data and China will publish house price index. However, trading is expected to remain subdued until the FOMC statement scheduled for Wednesday 18:00 GMT.