Morning, Traders!
It is Wednesday the 1st of FEDruary, Today we have the US Interest rate decision as well as the press conference with Fed chair Powell.
Here are some things to look out for.
Sentiment
This morning, the dollar index declined slightly as investors largely avoided trading ahead of the Federal Reserve's announcement today, where officials are expected to reduce the size of interest rate increases once more while leaving the door open for future increases.
While European bonds pared their rally following inflation data, treasuries climbed, headed by the long end.
US index futures increased as European stocks ended a two-day slide.
The Fed will shift to a 25 basis-point rate hike and likely indicate that it is still on schedule to reach a top rate of 5.25%, according to analysts.
Fed officials are adamant that the struggle against inflation is far from over. Investors are skeptical.
According to Jeffrey Gundlach, chief investment officer at Doubleline Capital LP, the Fed would likely fight any claims that it will soon stop raising interest rates and begin to loosen monetary policy by the year's end.
For a dedicated article to prep ahead of the FOMC rate decision, CLICK HERE
Coming up, we get ADP employment statistics, ISM Manufacturing reports and JOLTS job opportunities.
Additionally, the Treasury will make its quarterly refunding announcement.
After weeks of publicly sparring over expenditure cutbacks and deficits as the US debt ceiling hangs in the balance, President Biden and House Speaker McCarty will finally assess one another.
Docket
8:15 AM ET
US ADP Employment Change for January
Median Forecast 180K | Prior 235K | Range: 210K / 120K
9:30 AM ET
Canadian S&P Manufacturing PMI
Prior 49.2
9:45 AM ET
US S&P Manufacturing PMI January Final
Median Forecast 46.8 | Prior 46.8 | Range: 47 / 46.7
10:00 AM ET
US ISM Manufacturing PMI - Median Forecast 48 | Prior 48.4 | Range: 50.5 / 46.3
US JOLTS Job Openings - Median Forecast 10.3M | Prior 10.45M | Range: 10.7M / 9.4M
10:30 AM ET
EIA Crude Oil Inventories - Median Forecast -1M | Prior 0.553M | Range: 3.5M / -4M
2:00 PM ET
US Interest Rate Decision - Median Forecast: 25bps Hike (4.75%) | Prior 4.5%
FOMC Rate Statement
Speakers
2:30 PM ET
FOMC Press Conference with Chair Powell
Earnings
4:05 PM ET
Meta Q4 2022 Earnings
Big day today, best of luck!
