APAC market quiet ahead of the Fed

[HONG KONG] Asian investors on Wednesday struggled to track a record close on Wall Street as they await the Federal Reserve’s latest policy meeting hoping for a guide on its plans for monetary policy.

The central bank is all but certain to lift interest rates after its meeting ends later in the day but the main focus will be on chair Janet Yellen’s comments afterwards.

Some analysts suggest the rise could be the Fed’s last this year as traders fret over tepid inflation and the future of Donald Trump’s big-spending, tax-cutting agenda. Hopes for those policies had fuelled expectations of a surge in prices – and a jump in borrowing costs – but is now in trouble as the tycoon in enveloped in political crises.

“With the rate hike now 96 percent priced in focus will fall on the Fed’s forward guidance and importantly their views surrounding low inflation,” Stephen Innes, senior trader at Oanda, said in a note.


The Business Times


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes