Markets are waiting for FOMC meeting results
Today, global markets are trading amid a thin news background and the expectation of tomorrow's meeting of the FOMC. USD dollar has changed slightly relative to most of the major currencies and still remains under pressure. In Europe, the all European Stoxx 600 is trying to stop the three day negative session and gains 0.5%, led by the financial sector.
Trading activity on FOREX today is below average. The Japanese yen looks stronger today. The Japanese currency gained during the fifth session. Today, the pair broke through an important level of resistance JPY111.30 and tries to gain a foothold above this level, trading at the mark of JPY111.40. Earlier, Japan reported that its preliminary PMI in the production sector fell to 52.2 in July from 52.4. The Australian dollar is trading steadily, being above $ 0.79.
The Canadian dollar also remains within the limits of yesterday's ranges. At the end of the week, Canada reports May GDP. The annual growth rate may increase and it seems that this year Canada will be the fastest growing economy of the G7. Meanwhile, the euro gained to the level of 1.17 and is trying to gain a foothold at the level of 1.1680.
Yesterday in St. Petersburg, a meeting of the OPEC supervisory committee took place. This event was widely expected by the market, but had almost no significant impact on market. Following the meeting, Saudi Arabia agreed to cut production and limit exports to 6.6 million barrels a day. In the first five months of the year, Saudi Arabia exported 7.2 million barrels a day. The reports said that the kingdom increased output by about 50 thousand barrels a day, and many observers believe that it violates the agreement.
On the eve of tomorrow's FOMC statement, today's economic data is probably not going to matter much. Today's statistics include house prices from the S & P, consumer confidence and the production index in Richmond.