Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
It’s rate decision day
The Federal Reserve Open Market Committee (FOMC) got its two-day policy meeting underway on Tuesday amid expectations the policymaking FOMC will keep rates unchanged and announce plans to begin unwinding its $4.5tn bond portfolio at the conclusion of its meeting on Wednesday.
As well as plans for balance sheet unwinding, the Fed’s Summary of Economic Projections and dot-plot are expected garner much of the attention, as investors are keen to assess whether the slowing pace of inflation has altered the central bank’s longer-term view on interest rates.
Investors are also expected to carefully monitor comments from Federal Reserve chair Janet Yellen’s press conference for further insight into the central bank’s thinking on monetary policy. The press conference will follow shortly after the FOMC’s policy statement.
Ahead of the FOMC decision on interest rates, weaker than expected housing data weighed on the dollar as it lost ground on its rivals.
U.S. crude oil stockpiles to show third-straight weekly increase?
A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles rose for a third-straight week.
Analysts forecast crude inventories rose by about 3.5m barrels in the week ended Sept. 15.
Crude oil prices have made a mixed start to the week as expectations of a build in U.S. crude stockpiles offset growing optimism that the Opec-led deal to cut output will be extended through 2018, following bullish comments from Iraqi oil minister Jabar al-Luaibi.
Crude oil futures settled at $49.48, down 43 cents, on Tuesday.
Retail sales data to shift sterling higher?
Investors expect data to show weakness in UK retail sales growth in August as the sluggish pace of wage growth continues to weigh on household budgets.
The data comes amid growing expectations that the Bank of England will tightened monetary policy over the coming months, following comments from Bank of England governor Mark Carney earlier this week.
Carney said that "some withdrawal of monetary stimulus is likely to be appropriate over the coming months" to help return inflation to its 2% target.
GBP/USD rose 0.21% to $1.3525 on Tuesday.