The Fed is expected to lift rates by 25bps to 2.25-2.50%, with risks the hiking trajectory could be narrowed. The tone of the statement and Chair Powell’s press conference is expected to tilt dovish, reflecting a data-dependent FOMC.
A fading US dollar on the back of significantly weaker-than-expected Empire State manufacturing and NAHB indices, as well as US President Trump renewing his criticism on the Federal Reserve.
In the currency market, the dollar held firm after having touched a 19-month high against a basket of six other major rivals on Friday as the U.S. economy appeared to be in better shape than others.
US equities sustained additional loss over the course of last week, despite an earnest attempt to reclaim control of the 2018 yearly opening level at 24660.
The ECB stood pat on rates and confirmed the conclusion of QE whilst maintaining their guidance on rates
