- U.S. NFIB Small Business index improved from 94.9 to 98.4
- U.S. import prices down by 0.3% as expected in Nov
- Australian Westpac consumer sentiment down by 3.9% this month
Major currency pairs took shelter in their ranges in the calm before the FOMC storm as there were no major reports released.
Medium-tier U.S. data – Uncle Sam still had a couple of reports up his sleeve on a data-light day, but these weren’t enough to push the dollar in a clear direction. The NFIB Small Business index improved from 94.9 to 98.4 in November, outpacing the consensus at 96.7. Underlying figures indicated that eight out of the 10 components posted gains, with the outlook for business conditions accounting for most of the pickup.
Meanwhile, import prices posted a 0.3% decline as expected in November, erasing part of the previous 0.4% uptick. Components showed that the main drag was from lower fuel prices, particularly petroleum.
Pre-FOMC market jitters – Even though a 0.25% interest rate hike from the Fed seems to be in the bag, market participants still seem pretty anxious ahead of the FOMC decision. As my buddy Forex Gump pointed out, forex junkies will be paying close attention to the dot plot of interest rate forecasts, updated growth and inflation estimates, and the policymakers’ views on the Trump presidency.
Many are expecting Fed head Yellen to counteract any hawkish moves with a few cautious remarks, possibly even citing their plans to stay put for the next few months. But even though there are several possible scenarios to consider, U.S. equities seem to have ended the day in a good mood as the Dow closed 0.58% higher while the S&P 500 index advanced 0.65%.
Major Market Movers:
USD – The dollar tossed and turned as traders paced back and forth while figuring out how the FOMC statement might turn out.
USD/JPY dropped from 115.41 to a low of 114.96 then popped back up to 115.33, USD/CHF slid from 1.0132 to 1.0102 then climbed to 1.0131, EUR/USD traded sideways around 1.0625, and GBP/USD fell upon hitting a high of 1.2725 to 1.2650.
- 11:50 am GMT: Japanese Tankan manufacturing index (10 expected, 6 previous)
- 11:50 am GMT: Japanese Tankan non-manu index (19 expected, 18, previous)
- 12:30 am GMT: Australian new motor vehicle sales
- 4:30 am GMT: Japanese revised industrial production (0.1% expected)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!