Thursday , 12 December 2024
Home Forex The central bank bonanza continues with the SNB and BOE later today
Forex

The central bank bonanza continues with the SNB and BOE later today

It was a straightforward reaction to the FOMC meeting yesterday, as the Fed bolstered expectations of a June rate cut. The dot plots still showed 75 bps of rate cuts this year and Powell rounded that off with a more dovish stance overall. As a result, the dollar fell as risk trades soared while gold surged to a fresh record high. In fact, the precious metal is now testing waters above $2,200 after a run to $2,222 in Asia earlier.

So far today, markets are following through on the post-Fed reaction with the dollar also in a softer mood. USD/JPY trimmed its run higher from yesterday, now down another 0.5% to 150.50. Meanwhile, EUR/USD is trading back above 1.0900 to 1.0930 levels while GBP/USD is up over 100 pips from the lows yesterday to near 1.2800 currently.

In the equities space, S&P 500 futures are up another 0.4% following yesterday’s record close. Tech shares remain buoyant with Nasdaq futures up 0.6% as a shove lower in Treasury yields is helping.

Looking to European trading today, the central bank bonanza is going to continue with the SNB and BOE coming up. I shared some thoughts on those earlier this week here, with the SNB having the potential to surprise while the BOE should be more of a placeholder. If there are no surprises, markets would have little reason to get jumpy in the session ahead.

As such, the main focus will continue to be on the post-Fed reaction. However, we will also be getting a dash of PMI data from Europe. That will be one to perhaps keep euro traders interested, although the odds of a ECB rate cut in June are already at ~86% currently.

0745 GMT – France March business confidence0815 GMT – France March flash manufacturing, services, composite PMI0830 GMT – Germany March flash manufacturing, services, composite PMI0830 GMT – SNB announces its Q1 monetary policy decision0900 GMT – Eurozone March flash manufacturing, services, composite PMI0900 GMT – Eurozone January current account balance0930 GMT – UK March flash manufacturing, services, composite PMI1200 GMT – BOE announces its March monetary policy decision

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading this week! Stay safe out there.

This article was written by Justin Low at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

NASDAQ Futures AI Analysis: Bearish Momentum Targets Key Support Levels

Nasdaq Price Prediction by ForexLive.com's AI: Bearish Bias, Score: -6The AI-driven prediction...

Karrier One Launches Decentralized WiFi Hotspot Devices on Sui Network

Karrier One, a decentralized physical infrastructure network (DePIN) built on the Sui...

Technology sees mixed signals: Semiconductors struggle while healthcare shines

📉 Semiconductor SectorThe semiconductor sector faces a challenging day, with notable declines....

Trump: Stock market is very important.

Talking about lowering taxes to 15% from 21%Stock market is very importantAre...