Markets were little changed in Europe early on Wednesday morning with a “standby mode” talking hold as investors brace for a busy trading session. Everybody will be paying attention to important US data today with both GDP and ADP non-farm payroll due out later. However, the big news will come from the FOMC meeting later this afternoon.
Even if a quarter basis point rate cut is now widely expected by most investors, Jay Powell’s tone will be even more important than the rate decision. With not much more room for further rate cuts and signs of global uncertainty easing, investors will be looking for clues regarding answers to the question: is it the end of the mid-term monetary policy adjustment? We expect higher volatility levels with strong price action during the Fed Chairman’s speech if a “hawkish cut” looms.
Photo by JP Valery.
