All eyes will be on the Fed this afternoon as markets eagerly await the FOMC interest rate decision and the statement thereafter. Analysts expect no change to rates but a dovish outlook and for the Fed to highlight the weakening US economy. Markets are still waiting for the Governments proposed a new $1 trillion stimulus package to be agreed to by the Democrats while the spike in Coronavirus cases continues to dampen the outlook for the US economy.
The Dollar remains out of favour but is off it’s weakest levels of the past week. The DXY index is currently at 93.710 as the Euro trades at 1.1728 and the Pound at 1.2920 in the Far East. The Rand is trading at 16.4990, just below yesterday’s 16.5102 close and still within current ranges.
Wall Street was sold off yesterday on the back of a weak consumer confidence number, and US futures are currently pointing to further losses today. Asian stocks are mainly in the red with the Shanghai the only index showing gains. The JSE closed 0.29% higher yesterday as gains in the Financial sector offset the losses in the Gold Mining and Resources sectors.
Gold is steady this morning at $1 954.15, but both Platinum and Palladium are weaker today. Oil trading remains subdued with prices relatively unchanged for the second consecutive day. WTI is trading at $40.95 and Brent crude at $43.20.
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