Morning Call: News of Trump/Xi meeting lifts equities
Senior Editor, Saxo Bank
Summary: More plots twists in the global game of trade wars and flagging economies as Trump tweets he'll have an 'extensive' meeting with China's President Xi at the G20 and he also slams ECB President Draghi for dovish signals that sent EURUSD lower. But the real big ticket item on today's agenda is the FOMC meeting.
FX Breakout Monitor: USD limping post-FOMC, SEK rally continues
The US dollar dropped again after the FOMC, triggering downside breakouts in a number of US dollar pairs, including in EURUSD. Still, the larger breakout level lies a bit higher for that pair and for AUDUSD, both of which bear close watching here. Elsewhere, the SEK rally has taken on new strength and sterling traders are eyeing the UK election results rolling in tonight.
FOMC meeting: From “Powell Pivot” to “Powell Pause”
The December FOMC meeting was not a game-changer. Interest rates were left unchanged and the Fed reiterated its view that the economy is on track. Recent developments in the repo market were a big theme during the Q&A session.
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