Wednesday's Federal Open Market Committee outing saw the US central bank make several notable changes to its language whose overall bias was to the hawkish side. Growth, for instance, was cited as 'solid' rather than 'moderate' and the overall sense from the Fed was that the US economic recovery is on track.

While the meeting's impact on equities, forex, and commodities was limited, Saxo Bank head of Equity Strategy Peter Garnry says that things could prove very different for emerging markets if the Fed holds to its hawkish policy outlook, including two more rate hikes this year.

"The trajectory here is painful for emerging markets," says Garnry, who also cautions that equities could take a post-Fed hit from President Trump's planned tariff announcement into this weekend.

Up today is the European Central Bank, and the big question here is whether it will offer guidance on its QE tapering plans or whether it will wait until its July meeting to make the announcement with six more weeks of data under its belt.

"The expectation here is that QE will last until year-end," says Garnry.

Saxo Bank Head of Commodity Strategy Ole Hansen reports that silver is one asset to watch into the ECB session as it is challenging resistance above $17/oz. Gold, meanwhile, remains "glued to $1,300/oz" with inflation expectations and trade fears providing support.

"$1,308/oz remains the upside level to watch in gold," says Hansen.

You can access both of our platforms from a single Saxo account.

Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)