Markets gear up for the FOMC event – Crypto News – Crypto News
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EUR/USD builds a cushion around 0.9940, downside looks likely ahead of German/US PMIs EUR/USD builds a cushion around 0.9940, downside looks likely ahead of German/US PMIs

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Markets gear up for the FOMC event – Crypto News

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An inconclusive session in the Greenback left the USD Index (DXY) flat around the 103.40 region, while EUR/USD managed to edge further up and revisit the mid-1.0800s in the context of alternating risk-appetite trends prior to FOMC-day.

Here is what you need to know on Wednesday, January 31:

A positive surprise in JOLTs Job Openings coupled with an improvement in Consumer Confidence tracked by the Conference Board seem to have been insufficient to spark some reaction in the Greenback, which succumbed to the pre-FOMC lull. The Fed meets on Wednesday and is largely anticipated to leave its monetary conditions unaltered, while attention is expected to gyrate to Chair Powell’s press conference and to any hint of the timing of a potential interest rate cut. Previously, ADP was expected to report on job creation by the US private sector, seconded by the publication of the Employment Cost Index.

In the euro area, the focus of attention will be in Germany, with the publication of Retail Sales and the labour market report for the month of January, followed by the advanced Inflation Rate for the first month of the year. EUR/USD has been gathering some traction since last Friday, although its short-term price action is expected to largely depend on Fed dynamics.

GBP/USD traded on the defensive and returned to the sub-1.2700 zone despite the dollar’s irresolute price action. Looking at Wednesday’s docket, housing prices measured by Nationwide will be the only release of note.

Further side-lined trading saw USD/JPY reverse Monday’s decline and chart modest gains near the 148.00 barrier. On Wednesday, a busy Japanese calendar includes the BoJ Summary of Opinions, Retail Sales, Flash Industrial Production, Housing Starts, and January Consumer Confidence.

In Australia, traders will closely follow the release of the Q4 Inflation Rate and the December Monthly CPI Indicator ahead of the key RBA meeting next week. In addition, China’s NBS Manufacturing and Non-Manufacturing PMIs should also gather importance. AUD/USD, in the meantime, maintained its consolidative mood around the 0.6600 zone.

Prices of crude oil resumed the upside following Monday’s strong corrective decline, always supported by persevering geopolitical concerns in the Middle East and the Red Sea crisis.

Gold prices added to the positive start of the week and briefly probed the $2050 zone, or multi-day highs. Silver, on the other hand, partially faded Monday’s marked advance.

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