Markets Take A Breath Ahead Of FOMC Rate Decision This Evening
FxPro Financial Services Ltd | Jun 13, 2018 02:55AM ET
The global markets are holding steady as traders position for the FOMC today and the ECB tomorrow. In an interview with FOX News, US President Trump suggested that there will be additional tariffs imposed on China on Friday focused on Chinese agricultural products. Chinese stock markets are down as a result but most other markets are steady today ahead of the FOMC Rate Decision to be announced later. During the same interview the President said that “War Games” would be suspended while negotiations are ongoing with North Korea in a show of good faith. He also made the comment that the Iran deal was worse than NAFTA, highlighting the dire situation for the trade agreement in North America.
UK Average Earnings excluding Bonus (3Mo/Yr) (Apr) were 2.8% against an expected 2.9% from 2.9% previously. Average Earnings including Bonus (3Mo/Yr) (Apr) were 2.5% against an expected 2.6% from 2.6% previously. Wage growth is holding steady in the same range for three years, with this month’s number weaker than the expected readings. ILO Unemployment Rate (3M) (Apr) came in as expected at 4.2% compared with 4.2% previously. Claimant Count Change (May) was -7.7K against an expected 11.3K from a previous reading of 31.2K which was revised down to 28.2K. Claimant Count Rate (Jun) came in the same as the previous number at 2.5%. The unemployment rate is at multi decade low around 4.2%. The Claimant count had its drop confirmed after exceeding expectations and surprising to the upside last month. GBP/USD hit a high of 1.34183 when the data came out but ended up selling off to 1.33502 before the US session began.
German ZEW Survey – Current Situation (Jun) fell to 80.6 against an expected 85.0 from a prior 87.4. ZEW Survey – Economic Sentiment (Jun) came in at -16.1 below the expected -14.0 from -8.2 previously. These data softened as the economic data in Germany and the wider eurozone disappoints. The deteriorating trade environment is also a head wind for business outlook. In April the sentiment dropped below zero and continues to decline.
Get The News You Want
At 12:30 GMT, US Consumer Price Index (YoY) (May) data was released coming in at 2.8% against an expected reading of 2.7% against 2.5% previously. Consumer Price Index Ex Food & Energy (YoY) (May) data came in at 2.2% against an expected reading of 2.2% from 2.1% previously. Consumer Price Index Ex Food & Energy (MoM) (May) data was released at 0.2% with an expected reading of 0.2% against 0.1% previously.
Consumer Price Index (MoM) (May) data came in at 0.2% with an expected reading of 0.2% against 0.2% previously. These data points show that the data came in largely in line with expectations with slight increases from the previous readings.
- EUR/USD is up 0.04% overnight, trading around 1.17498.
- USD/JPY is up 0.18% in the early session, trading at around 110.563
- GBP/USD is down -0.04% this morning trading around 1.33668
- Gold is flat in early morning trading at around $1,295.7
- WTI is down -0.11% this morning, trading around $65.99
For more in-depth analysis and market forecasts visit us here .
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.