Yesterday was a trying day on U.S. stock markets, as the diverging direction of monetary policy in the United States compared to the rest of the planet drove investors towards profit-taking. With the Fed scheduled to meet next week, markets reacted abruptly out of fear that Chair Janet Yellen could be quick to raise the key rate while everywhere else, and just recently in the eurozone, central banks are implementing expansionary monetary policies. However, this trend appears to have been short-lived, as this morning, futures are pointing to an opening slightly into the green on Wall Street. The greenback has been a major beneficiary of this climate of uncertainty, while the euro has lost an average of 150 points per day since the beginning of the week against the USD.
This morning, we are awaiting data on U.S. Crude Oil Inventories. Later in the day, the Reserve Bank of New Zealand will announce whether it will move its key rate, which currently stands at 3.50%. Have a great day!
Rana Karim
Range of the day: 1.2660 - 1.2740