Daily Brief, Oct 9: Economic Events Outlook – Eyes on FOMC Meeting Minutes
Arslan Butt • 2 min read
Good morning, traders.
Following a fundamentally dead Monday and Tuesday, investors finally have top- tier economic events to trade today.
The US dollar slipped versus the safe-haven currency Japanese yen on Tuesday. The bearish trend in the dollar was mostly pressured by reiterated concerns about trade. However, the dollar index strengthened versus its peers as Federal Reserve Chair Jerome Powell avoided pledging more rate reductions even after economic events revealed an unexpected decline in US inflation figures.
Today, the investor focus shifts to Fed Chair Powell’s speech and FOMC meeting minutes from the United States. Besides, the US crude inventories will also remain in highlights to help predict future trends in the market.
Watchlist – Top Economic Events to Follow Today
EUR – Eurogroup Meetings – All Day
The Eurogroup meetings are usually held in Brussels and attended by the Eurogroup president, Finance Ministers from Euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank.
This meeting aims to discuss a range of financial issues, such as euro support mechanisms and government finances.
Though the meetings are closed to the press, the officials usually talk with reporters throughout the day. The time of the conference isn’t confirmed yet. However, it’s most likely to start during the European session.
Fed Chair Powell Speaks – 15:00 GMT
At about 15:00 GMT, the Federal Reserve Chair Jerome Powell is due to participate in a panel discussion at the Fed Listens, an event hosted by the Federal Reserve Bank of Kansas City. Audience questions are expected, but it may not help drive volatility, and traders will be eyeing the more significant event, the FOMC Meeting Minutes.
It’s a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
Fellas, the Federal Reserve releases FOMC meeting minutes about eight times per year, three weeks after the Federal Funds Rate is announced.
The minutes from the September conference may shed some light on the world’s most influential central bank. The Fed voted to lower rates for the second consecutive time and denied to mention if more interest rate cuts are imminent. Out of nine members of FOMC, thee officials voted against the unanimous verdict.
Now the question prevails, are hawkish policy sentiments gaining control? Conversely, is the US Federal Reserve becoming more concerned about global issues?
Traders will be looking to find clues on the next policy decision and if the central bank signals further rate cuts.
USD – Crude Oil Inventories – 14:30 GMT
The Energy Information Administration is due to release the inventory data with a forecast of 1.8M build in inventories vs. 3.1M inventories build during the previous week.
As per the API (American Petroleum Institute) report, the US crude inventories rose by 4.1 million barrels for the week ended October 04. This can be due to no trade deal sentiment between the US-China.
The crude oil is facing slight bearish bias ahead of the EIA report as traders are expecting the EIA to report build in inventories due to its positive correlation with API report.
That’s it for now, but do check FX Leaders economic calendar for the live coverage of these major events.