The two days FOMC meeting began Tuesday and concludes with a statement and a press conference due later today. The central bank scheduled to issue its policy statement at 18.00 GMT. Fed is expected to hold its federal fund's rate steady and bond-buying at a $120 billion monthly pace. The key focus will be on the FED statement and the press conference of U.S. Federal Reserve chair Jerome Powell.
On Tuesday, Wall Street ended mixed despite strong financial results from Microsoft and Google, but the NASDAQ and S&P 500 closed near the all-time high. While Alphabet shares bounced more than 4% in after-hours trading following the strong Q1 results.
On the earnings front, Shopify (NYSE: SHOP) and Boeing (NYSE: BA) reporting earnings today before the bell while Apple (NASDAQ: AAPL), Facebook (NYSE: FB) and eBay (NASDAQ: EBAY) is scheduled to report results after the market close.
Crude oil prices recovered from the Asian session losses. During the Asian session, the oil prices slip following the weaker-than-expected API inventory data. The data showed the oil inventories increased by 4.319 million barrels in the week ended April 23rd.
In the currency market, the Australian dollar slipped to a fresh weekly low after the release of weak quarterly inflation data. The EURO and GBP look for direction ahead of the Fed meeting.
The Safe-haven metal trading lower on Wednesday. The metal retreats lower after the US dollar Index rebounded above 91 supported by the upbeat US consumer confidence data. Overall, the momentum remained bearish during the Asian session.
On the data front, consumer prices in Australia increased by just 0.6 per cent over the three-month period, while in the year to March, it rose by 1.1 per cent, lower than consensus expectations of 1.4 per cent. On the other hand, the US CB Consumer Confidence index grew to 121.7, a 14-month high, in April.
Moving ahead today, the important events to watch:
US – Crude oil inventories: GMT – 14.30
US – Fed rate decision and statement: GMT – 18.00
US – Fed chair Jerome Powell conference: GMT – 18.30
Worldwide, more than 147 million people have been confirmed infected and more than 3.1 million have died. The United States has confirmed over 32 million cases and has had more than 572,000 deaths from COVID-19, the highest totals in the world. On the positive side, India reported 323,144 new cases, slightly below a worldwide peak of 352,991 reached yesterday.
DOLLAR INDEX: The US dollar trading slightly higher on Wednesday ahead of FOMC latest policy decision. At the writing, the USD trading above the 91.00 area.
The important levels to watch for today: Support- 90.60 and 90.30 Resistance- 91.20 and 91.60.
GOLD: The gold price dropped to a fresh weekly low of $1766 on Wednesday. If the bearish momentum continues the next downside levels to watch $1763 and $1756.
The important levels to watch for today: Support- 1762 and 1756 Resistance- 1775 and 1784.
Quote of the day: Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected – George Soros.
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