As we get into the new week, major central bank decisions will be in the spotlight but none that will stand out more than the Fed. As such, that is likely to keep traders and investors more guarded in the next few days until we get to the FOMC meeting decision.
So far today, things are quieter as the market mood looks relatively muted and tentative. Major currencies are not doing much, with dollar pairs holding within less than 15 pips change to one another so far today. The under 20 pips range for EUR/USD exemplifies the kind of mood we're seeing as we look to the session ahead.
Given that market players will be waiting on the Fed, we can expect more of this kind of tentative mood over the next two days at least. There is no rush to chase anything until we wait to hear on whether the Fed will reaffirm dovish market expectations or surprise with a slightly more hawkish undertone.
Elsewhere, equities are keeping steadier after a more muted end to trading last week. European futures are up a little with US futures marginally higher by 0.1%. With a big focus on the Fed, the bond market also isn't likely to make any plays in the meantime. And in the commodities space, gold is just hovering around the highs above $3,600 as it also awaits its fate on the Fed decision this week.
