Markets drifted lower ahead of the Federal Reserves 2 day meeting. The Fed is not expected to change any interest rates and also endorse current monetary policy. They have leverage to expand monetary policy and add further stimulus and they may announce further measures. The US Senate announce a further stimulus package but it remains in negotiation with the House. Earnings season has beaten expectations, for more than 80% of companies and has supported the strong rally in equities.
US Consumer Confidence was unexpectedly lower, while the Richmond Fed Manufacturing Index rose, providing a mixed message to markets. The S&P Case Shiller Home Price Index was steady, allowing this leading index to continue to provide leadership. The USD continued to drift lower, with the GBP trading 1.2940, while the Yen jumped to 105.05.
Commodity currencies continued to benefit the weaker reserve. With the AUD pushing 0.7150, while the NZD looked to regain 0.6650. Markets await the Federal Reserve decision and associated commentary. US/China tensions continue to boil and any escalation will impact the trade exposed currencies.