The USD is lower ahead of the FOMC decision at 2 PM ET
The FOMC will conclude their two day meeting today with the Fed expected to start the taper process. The expectations is for $15B taper per month with completion by the middle of next year. A deviation from the plan could see a sharp reaction by the markets. The USD is lower and battles with the CAD as the weakest of the majors to start the North American session. The NZD is the strongest of the majors. The ADP non farm payroll estimate (est 400K) ahead of the BLS jobs report on Friday (est 455K) will be released at 8:15 AM ET/1115 GMT. The ISM services PMI will be released at 10 AM ET (Est 61.9) and Factory orders (est 0.1%) will be released at 10 AM ET. BOE Bailey will speak at 12 PM ET. The market will in interested in his comments ahead of the BOE decision tomorrow although speaking specifically ahead of that decision is not expected (speaks on Laying the foundation of a Net Zero Financial system).
In other markets as North American trading begins
- Spot gold is trading down $2.32 -0.13% at $1785
- Spot silver is trading up six cents or 0.23% at $23.57
- WTI crude oil futures are trading at $81.90. That's down -2.35% on the day
- Bitcooin is trading steady near $63,174
In the premarket for US stocks, the major indices are mixed after record closes across the board once again yesterday:
- Dow -48 points after yesterday's 138.79 record close gain
- S&P index -2.5 points after yesterday's 16.98 point gain. It too was a record close
- NASDAQ index (also closing at a record level yesterday) is currently up 25.51 points after a 53.69 point gain yesterday.
In the EEuropean equity markets, the major indices are mixed:
- German DAX, +0.1%
- France's CAC +0.2%
- UK's FTSE 100 -0.3%
- Spain's Ibex -1%
- Italy's FTSE MIB +0.5%
In the US debt market, the yields are lower across the maturity spectrum with the 10 and 30 year each down around -1.4 basis points
in the European debt market, the yields are also trading lower with the Italian 10 year down -6.9 basis points. The German 10 year is back to -0.19% after getting close to the 0.0% parity level recently:
