Big Day Ahead: FOMC and Tech Earnings

Wednesday finally brings a shift in focus from geopolitics to macro and earnings.

For the past weeks, markets were driven mostly by headlines around Iran, but today attention moves to central banks, especially the Federal Reserve.

The key event is the FOMC decision, followed by the statement and press conference. Earlier in the day, we also have a rate decision from the Bank of Canada. In both cases, no change in rates is expected, but as always, the tone and guidance will matter more than the decision itself.

Overnight, we already had inflation data from Australia, which came in below expectations. That explains the weakness we’re seeing in the Australian dollar and New Zealand dollar.

Looking at markets, indices are undergoing a small correction but are starting Wednesday on a slightly positive note.

On the currency market, we see strength in the US dollar and Swiss franc, while European currencies are weaker.

In commodities, gold and silver continue their mid-term weakness, extending the negative trend.

Cryptocurrencies remain volatile. After a strong drop yesterday, Bitcoin and Ethereum attempted a rebound during the Asian session, but early European trading is again leaning negative.

On the earnings side, we already had strong results from Coca-Cola and Visa, both beating expectations and reacting positively.

But the real spotlight is on today’s after-market releases. Heavyweights like Alphabet, Microsoft, Amazon, and Meta Platforms are all reporting.

So we have a rare combination: a Fed decision and major tech earnings on the same day.

That usually means one thing, higher volatility, especially on indices like the Nasdaq.

In short, this is likely to be one of the most important trading days of the week, with markets finally getting drivers beyond just headlines.

Source: https://www.axiory.com/analytics/market-news/big-day-ahead-fomc-and-tech-earnings