|Today and tomorrow, members of the Federal Reserve meet in Washington to discuss interest rates. Back in the summer, most market analysts thought October was the month for a rate hike, but given the economic developments in both the US and China, most market expectations have shifted into 2016. The policy-making committee is expected to keep benchmark interest rates near zero in today’s meeting, but most analysts will be focused on the Fed’s language, rather than the actual decision, to try to get hints about the possibility of lifting rates at its next gathering in December.As far as economic data for today, the U.S. expects few data points this morning. Durable Goods Orders for September just came out and registered a slightly worse than expected number. Later on, we expect to see the readings from Markit PMI Composite and Consumer Confidence reports, both packing volatility for USD crosses if data misses the mark.
In the U.K., GDP figures came slightly off market expectations for the quarter and year. Although these are not terrible numbers, they will likely weigh on sterling trading levels as this week holds little U.K. economic data.
EURUSD is trading a bit higher this morning in light of the weak Durable Goods numbers. The currency pair has been oscillating around yesterday’s close, but we are likely to see bigger movements in the next couple of trading hours as two other important economic reports are on deck.
GBPUSD saw a few swings in the early European session, initially reacting to soft GDP figures, and then moving back up after U.S. data printer soft figures as well. The pair will be mainly driven by U.S events
USDCAD has been moving higher since the start of this week due CAD depreciation. This has been mainly caused by a continuous drop in oil prices coupled by dollar appreciation amid turmoil in Europe.