The U.S. Dollar is rallying ahead of the much-awaited Fed meeting and press conference at 2PM later today.
Overview
Traders and investors are looking forward to commentary from Chairman Jerome Powell while expecting officials to pause interest-rate cuts. Inflationary concerns will be of focus as markets prepare for the potential of higher prices if indeed tariffs are implemented across the spectrum on imported products. The Fed’s “hawkishness” will be something to gauge as the questions-&-answers session gets going.
Earnings from big tech companies will also impact equities as the eventful Wednesday marks also the slowest pace projected for the “Magnificent Seven” in about two years. This adds to jitters following the report of China’s DeepSeek achieving a cheap A.I. solution that could mean less growth in that sector going forward. Once Fed talk is over, we have Q4 data points in Gross Domestic Product and Personal Consumption out tomorrow while Friday gives us the Employment Situation.
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What to Watch This Week…
- Euro-zone GDP, Thursday
- ECB Meeting, Thursday
- US Nonfarm Payrolls, Friday 8:30AM
- Monex USA Online is always open
CAD ⇓
The Canadian Dollar is down ahead of the Bank of Canada’s meeting. At the time of writing, the damage had been limited with most expecting the BOC to address the possibility of tariffs affecting inflationary pressures. “Loonie” remains around its weakest levels since the year 2020.
EUR ⇓
The Euro is losing ground as the Fed gets ready to explain its policy mentality and European Central Bank officials have their meeting tomorrow. Unlike the Fed, ECB members are predicted to be very stimulus-driven and assess that future cuts will also be in line. Additionally, we will have economic figures for the fourth quarter out as well.
