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Dec 13th, 2017: Markets remain wary before today’s historic Fed meeting

Morning Report: 07.00 London

Markets remain wary before today’s historic Fed meeting where rates are expected to increase 1.5%. This caution comes despite the Dow Jones hitting record highs last night. The dollar is down slightly but generally unmoved.

The New Zealand dollar continues as the top performer and is now set to rally for the fourth day in a row. The AUD/USD is also pushing higher this morning.

The pound has a slight positive edge, while the euro is unchanged, helping the EUR/GBP to make small losses so far.

The contrast between Western European and Australasian currencies is best shown in the AUD/JPY which is set to rally for the fourth day in a row, while the GBP/JPY looks set to sell off for the third day in a row.

The USD/JPY itself is down slightly.

Coming up today

Coming up today, we have UK average earnings index at 09.30. At the same time we have claimant count change and unemployment rate data.

At 13.30, we get US CPI and core CPI.

Crude oil inventories are released at 15.30.

The main ticket is the FOMC statement, fed funds rate and economic projections at 19.00. The press conference follows at 19.30.

Trade Idea

Gold has lost its glitter across world markets as the dollar holds at the highs and crypto-currencies offer more speculative returns.

Dec 13th, 2017: Markets remain wary before today’s historic Fed meeting

A good way to play this is a LOWER trade predicting that gold will close below $1235 in 21 days for a potential return of 157%.

Dec 13th, 2017: Markets remain wary before today’s historic Fed meeting