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Dollar recoils due to some calm around Evergrande and before the critical decision of the Fed

This is what you need to know to trade today Wednesday 22 September:

Markets are cautiously bullish as Evergrande promised to pay off some of its debt, easing some buying pressure around the US dollar. The focus shifts to the US Federal Reserve, which is ready to signal when it will reduce its bond buying program.

Evergrande Crisis: China’s bereaved real estate giant promised it would pay off its yuan-dominated debt payments due Thursday, providing some relief to investors. The People’s Bank of China (PBoC) injected more liquidity into the markets.

Analysts are divided among those concerned that Evergrande’s problems are a“Lehman moment” and those who think it is manageable. By early Wednesday, optimists appear to have an advantage, despite the lack of sufficient details from the embattled real estate company. It is unclear what happens to dollar-dominated payments and the risks of contagion to other companies.

Cautious appetite for risk: S&P 500 futures moved higher Wednesday after the index turned negative on Tuesday. The safe-haven dollar is retreating, albeit in a limited way.

The Federal Reserve it will leave its monetary policy unchanged, but it will hint at the time to reduce its plan of 120,000 million dollars a month. The markets will want to know the exact start date, the duration of this reduction and also smell when the Fed intends to raise interest rates. In addition to the decision on rates, the bank also publishes new forecasts.

The chairman of the Fed, Jerome Powell, offers a press conference that could prove decisive for market reaction. Recent milder inflation and a disappointing jobs report could prevent a pigeon Powell from delivering a message of impending tightening.

See: Fed Preview: Three Ways Powell Could Lower the Dollar, And None Are Projections

German elections: Chancellor Angela Merkel has joined Armin Laschet, her embattled CDU / CSU successor, in an effort to boost her campaign. Center-left candidate Olaf Scholz remains in the lead ahead of the September 26 vote. The EUR / UD it remains above 1.17.

Commerce: UK Prime Minister Boris Johnson is exploring joining the USMCA free trade agreement as a substitute for a direct Anglo-American trade deal. The GBP/USD It is trading around 1.3650.

The Bank of Japan it left its interest rate unchanged at -0.10%, as expected. The USD/JPY it is more influenced by the Evergrande crisis than anything else, trading around 109.50.

The cryptocurrencies They have leveled off after suffering a rapid decline on Tuesday. The Bitcoin is trading around $ 42,000, Ethereum is around $ 2,900, and Cardano is holding on to $ 2.

Raw Materials: Gold is hovering around $ 1,775, consolidating its gains related to somewhat softer US bond yields. WTI crude oil is around $ 71.

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