Forex Market Briefing
• The Federal Reserve is willing to extend its reserve management related purchases of Treasuries to coupon-bearing securities if that is appropriate, but the central bank is not yet at that point, according to Chairman Jerome Powell.
• U.S. stocks rose with Treasuries and the dollar fell after the Federal Reserve left interest rates unchanged and its chairman signalled it would keep policy “somewhat accommodative.”
• China yuan traders are undaunted by Sunday’s looming start of fresh U.S. tariffs even as investors elsewhere are piling into protection. As President Donald Trump’s Dec. 15 deadline for more duties on Chinese imports draws closer, one-week risk reversals — a measure of demand for bearish yuan bets relative to bullish calls in the options market — have been at their lowest since July.
• The U.S. Federal Reserve on Wednesday held interest rates steady and signalled borrowing costs are likely to remain unchanged indefinitely, with moderate economic growth and low unemployment expected to continue through next year’s presidential election.
• EUR/USD pair surged to 1.1144 and holds nearby,as the US Federal Reserve suggested ranges will remain low for long, as “significant, persistent” inflation needed before moving in that direction.
• The GBP/USD is trading above 1.32 after dovish comments from the Fed. Speculation ahead of the UK elections is rife. The Conservatives are on course to a narrow victory in a tightening race.
• Gold prices got boosted by persistent dollar’s weakness and US-China tensions. Spot near but below the 1,480 threshold.
|Server Time||HK Time||Currency||Description||Expectation|
|–||All Day||GBP||Parliamentary Elections||–|
|10:30||16:30||CHF||SNB Monetary Policy Assessment||–|
|11:00||17:00||CHF||SNB Press Conference||–|
|14:45||20:45||EUR||Main Refinancing Rate||0|
|14:45||20:45||EUR||Monetary Policy Statement||–|
|15:30||21:30||EUR||ECB Press Conference||–|
|19:30||01:30||CAD||BOC Gov Poloz Speaks||–|