This Wednesday is packed with events that will influence trading instruments throughout the day. Here are a few of the most important ones.
First of all, we need to have our eyes on the Federal Reserve of the United States. Today at 18:00 GMT they will be releasing their latest economic reports. Investors would look for clues as to the Fed’s sentiments on inflation and possible future interest rate hikes, and they are expected to find them in this report. Furthermore, there will be two separate speeches by Federal Reserve members Dudley and Quarles, which can also add volatility to pairs including the USD. Meanwhile, the Dollar index continues to be at a relatively low level at 89.43.
For traders who are following the developments with crude oil, today the United States will be releasing a report on its inventories (expected at 14:30 GMT). The forecast is a decrease by 0.5 million barrels. If the report comes in positive, the price of oil will go down. Likewise, if the report shows an even greater decrease, oil will grow in price.
In the United Kingdom the latest data on inflation shows a decrease to 2.5% overall, and 2.3% for core inflation. While the numbers are still above the “golden” 2%, it was unexpected that they would decrease on their own, without an interest rate hike. The Bank of England was in fact preparing to raise interest soon, but now this report casts a doubt on the prospect. The pound dropped as a result.
