{"id":69795,"date":"2023-09-20T10:56:06","date_gmt":"2023-09-20T07:56:06","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=69795"},"modified":"2025-11-27T14:03:39","modified_gmt":"2025-11-27T12:03:39","slug":"all-eyes-on-the-fed-5","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/ar\/all-eyes-on-the-fed-5\/","title":{"rendered":"All eyes on the Fed"},"content":{"rendered":"

The Fed\u2019s interest rate decision is due out today, with the majority of market participants anticipating that the Fed will remain on pause, amidst the backdrop of the US housing starts figure dropping to the lowest point since 2020, painting a worrying sign for the US economy. In addition, the US House of Representatives passed a measure that would temporarily increase the Government\u2019s spending ability whilst avoiding a government shutdown, yet the Senate Majority leader Schumer, stated that the bill would be \u201cdead\u201d on arrival, thus potentially resulting to a second round between Republicans and Democrats in a government shutdown scenario. In Canada the BOC Core CPI rates came in higher than expected, hinting at persistent inflationary pressures in the Canadian economy, which could increase pressure on the bank to resume its rate hiking cycle and as such could provide support for the CAD. Over in the UK, the CPI rates for August edged lower, hinting at easing inflationary pressures in the UK economy as the BOE prepares to meet to discuss its next interest rate decision. The lower-than-expected CPI rates could potentially ease pressure on the bank should they wish to adopt a more dovish tone or should the decide to remain on pause, albeit an unlikely scenario. In the commodities markets, the liquid gold appears to be halting its upwards trajectory, despite the API weekly oil inventories reporting a wider than expected drawdown of the US oil inventories.  In Europe, ECB\u2019s Villeroy stated that \u201cThe ECB is not at the point today where we could cut rates\u201d, hinting that the current interest rates will remain at current levels for a prolonged period of time, which could provide support for the common currency in the long run if  the ECB\u2019s counterparts cut rates earlier. Lastly, we note the increasing tensions between Poland and Ukraine over Poland\u2019s ban on Ukrainian grain, as such should the ban be lifted and an influx of grain is seen in Europe, we may see the price of Wheat moving to lower ground.<\/p>\n\n\n\n

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