mask Big Day - FOMC Rate Decision

02/ 11/ 2016

Big Day - FOMC Rate Decision

Daily Update

Yesterday's markets

  • China Manufacturing PMI
  • RBA Interest rate Decision
  • UK Manufacturing PMI
  • US ISM Manufacturing PMI

Yesterday Explained

AUD was strengthened  early hours of yesterday, as RBA decided to keep the Interest rate unchanged. Positive data from china’s Manufacturing PMI also helped AUD to gain traces as Australia depend heavily on Chinese Imports. Later in the evening, The USD failed to benefit from higher than expected ISM manufacturing data.

The greenback remains under pressure, with latest US election polls adding to weakness as Clinton's advantage over Trump seems to have been drastically reduced after the FBI re opened investigations over Clinton’s email. Euro Appreciated, hitting a fresh 3-week highs above EUR/AED 4.06  amid broad USD weakness. This meant that EUR/AED has climbed up more than 0.67%.

Today's Market

  • EUR Spanish Manufacturing PMI & German Unemployment Change
  • GBP Construction PMI
  • USD Crude Oil Inventories & Federal Funds Rate

Today's Focus

The penultimate FOMC rate decision for 2016 is scheduled tonight. No doubt markets will be looking for further guidance from Fed Chair Janet Yellen, and the other FOMC members to see if they signpost December as the month where the central bank will pull the trigger and hike rates for the second time in a decade. 

Although lately the date has exceeded market expectations, economists’ still see this week’s meeting as too early to raise rates, and are anticipating that the Fed will point to Decembers meeting for action to be taken. The US ADP non-farm private figure is also set to be released which although not always accurate does gives insight into Friday’s employment figure.