All Eyes on the FOMC: Is the USD About to Break Higher?

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1. All Eyes on the FOMC: Is the USD About to Break Higher? 

The Federal Open Market Committee is set to announce its latest interest rate decision today in an event that will draw investor attention. With a high probability of another rate cut being a virtual certainty, it’s safe to assume that it’s already been largely priced in. Of course, if we get a big surprise and the FOMC decides not to cut, it could be another story when it comes to market volatility. Yet tonight the USD could come out stronger showing further momentum out of nowhere with the 3rd cut in a row as Fed officials continue to express their reserves with regards to the current policy. Don’t miss BDSwiss’ free live FOMC webinar, get live market analysis and ask questions in real-time.


2. New U.K. Elections Coming Up

In Europe, the U.K. has confirmed it will hold another general election on December 12th  after Prime Minister Boris Johnson gained approval from the U.K. Parliament yesterday. That means the question of how — or even whether — the UK should divorce the European Union will be put back to the British public. Will new elections change the entire Brexit situation now? Market participants are clearly waiting for positive news to buy the GBP so our long term approach might still be very positive. 


3. Corporate Earnings in Focus 

Meanwhile, corporate earnings also remain high on the agenda after a slew of big bank earnings on Wednesday morning which saw Deutsche Bank reporting steep losses and Credit Suisse reporting a higher-than-expected third-quarter net income. Today, we also have a great number of other key players reporting including Airbus Group, MGM, Santander ADR, Facebook, Ferrovial, Volkswagen ST, General Electric, Starbucks, Aviva, CME Group and Apple


4. Global Bourses Turn Red on US/China News

Global bourses are seen trading mostly lower on Wednesday amid reports that China is reluctant to commit to U.S. President Donald Trump’s demands of buying more than $50 billion of U.S. farm products. The news brought stock markets down and pushed safe-havens higher. Overall, stock markets still showing growth but with slow momentum. Meanwhile, a third cut by the FOMC today could push stock markets higher especially if the dollar dips. 



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CNBC Oct 30, 2019 2:48 AM ET
Investing Oct 30, 2019 7:33 AM ET
Bloomberg Oct 30, 2019 6:45 AM ET
Reuters Oct 30, 2019 05:58 AM ET

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