It is the FOMC meeting today, current rate is set at the 1.50~1.75% range and no change of monetary policy is expected. A probable scenario is a further strengthening of the USD. Neverheless, it is worth noting that market participants are already starting to price in another rate cut within 2020.
Mike Pompeo, the US Secretary of State, is meeting Boris Johnson in London, as Britain has decided to allow the Chinese tech giant Huawei to supply 5G equipment. Britain will exclude Huawei from safety related and safety critical networks. Nevertheless cyberespionage cannot be limited.
US, Japanese, EU, South Korean and Australian citizens are being evacuated from the Chinese city of Wuhan, where the new coronavirus outbreak was first reported.
Trump’s peace plan for Middle East matches the nationalist views of Benjamin Netanyahu. “We say 1000 no’s to the Deal” was Mahmoud Abbas, the President of Palestine, reaction.
Macro releases & Earnings: Besides the FOMC meeting, today’s economic calendar includes the US Crude oil inventories and the New Zealand’s trade balance. Note that New Zealand’s economy is decisively affected by its tourism. This makes the coronavirus outbreak significant for the NZD. Following the yesterday’s promising Apple’s call, today it is the turn of Facebook, Microsoft, Mastercard and Boeing to release their earnings.
Disclaimer
The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.