Markets react to the Fed and more central bank decisions today
Massive day fo the UK today as the public take to the polls to vote for their Prime Minister. If the polls are to be believed Boris Johnson should hold on to win a small majority. Having said that, during the referendum remain was in the lead in the polls and in the last US election, Hilary Clinton was the front runner.
Last night we got the latest from the FOMC. They kept rates unchanged as expected and didn't really move on policy. So we are data watching for now. Equities in the US closed slightly higher and over in the Asia Pac area the Nikkei closed 0.14% higher and the ASX and Shanghai Comp. lost ground.
Spot gold broke the $1470/oz level to the upside and trades at $1473/oz at the start of the EU session. This came as the greenback suffered following the FOMC statement and press conference. The market seemed to latch on to the fact that Powell said that the Fed would only look at increasing rates if inflation moved too high.
Copper starts the session at elevated levels once again. Today the industrial metal holds at $2.77.lb. The main story to keep an eye on here is the tariff rollbacks.
Oil inventoried increased slightly and OPEC projected oil demand to stay the same with a small increase in supply. This led to some price weakness yesterday but this morning spot WTI trades 0.06% higher at $58.85/bbl.
Today we will be looking out for UK election news, SNB, Turkish and ECB rate decisions, EU industrial production, US PPI and comments from BoC's Poloz, SNB's Jordan and ECB's Lagarde.