The markets were seen trading flat through the day in anticipation of the Federal Reserve announcement. As widely expected, the Fed funds rate was hiked by 25 basis points bringing the interest rates to 2.0% – 2.25%.
The Fed, in its press conference, released the dot plot. According to the forecasts, the central bank is expected to hike interest rates one more time this year and follow through with three more rate hikes next year.
In Sweden, the incumbent Prime Minister Stefan Lofven lost a vote of confidence, putting the political landscape into further confusion. The SEK was muted, but market watchers expect some volatility if there are talks of re-election.
The RBNZ held its monetary policy meeting during the overnight trading session. As expected, the central bank left monetary policy unchanged with the official cash rate steady at 1.75%.
The European trading session today will see the release of the ECB’s economic bulletin alongside Germany’s preliminary inflation data.
The NY trading session is expected to be busy. The durable goods orders data is planned followed by the final revised GDP figures for the second quarter. No changes are expected as the U.S. Q2 GDP is forecast to remain at 4.2%.
Later in the evening, the ECB President Mario Draghi will be speaking. This is followed by a late speech from the Fed Chair, Jerome Powell.
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