Federal Funds Rate will bring clutter today



Market Update –

Rescue of Credit Suisse calm concerns of a banking crisis has resulted in abrupt recovery in Crude oil prices yesterday.  Bullions prices retreated for a second consecutive day. The dollar fell Tuesday as traders reckoned banking stress could keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week

The dollar index fell 0.232% to 103.090, while sterling edged 0.34% lower to $1.2234.

Brent Crude was up 0.7%, at $75.07 a barrel by 12:40 p.m. ET (16:40 GMT). U.S. West Texas Intermediate (WTI) gained 1.2%, to $69.35.

MCX Crude oil posted 5.71% gain and settled at 5775.

Gold retreated 1.56%, and settled at 58579, silver down by 0.64% and settled at 68394.

Japan

N.A.

UK

At 12.30pm- CPI y/y, foreseen at 9.9% compared to previous 10.1%.

At same time – Core CPI y/y, data foreseen 5.7% compared to previous 5.8%.

Data could have a positive impact on the pound

At 3.00pm – HPI y/y, data foreseen at 7.1% compared to previous 9.8%.

At 4.30pm – CBI Industrial Order Expectations, data foreseen at -15 compared to previous -16.

Both data could have a neutral impact on the pound.

Eurozone

At 2.15 pm – ECB President Lagarde Speaks

At 2.30pm – Current Account, data foreseen at 16.5B, as compared to previous 15.9B

Above  data could have a neutral impact on Euro and Bullions.

US

At 11.30pm – FOMC Economic Projections,

FOMC Statement,

FOMC Statement, rate hike foreseen at 5.0% as compared to previous 4.75%.

The Federal Reserve’s meeting will be in the spotlight, with markets expecting a 25 basis point rate hike this time around.

However, Fed chair Powell had been widely signaling a 50bps hike in the lead-up to the March FOMC meeting. 

A rate hike could have a bullish impact on the dollar and negative for Bullions or vice versa.