This is what you need to know to trade today Thursday September 23:
The risk tone seems calmer at the start of the European session, as investors weigh the Fed announcement and the looming Evergrande debt crisis in China.
A sense of caution prevails as the market mood of risk appetite moderates slightly amid concerns about the impending debt repayment of Evergrande of 83 million dollars this Thursday, despite the fact that the People’s Bank of China (PBoC) has pumped 17,000 million dollars into the system. Markets remain hopeful as the indebted developer still has a 30-day grace period before it files for bankruptcy.
Investors appear to have shrugged off the gains in the 3.5 trillion spending plan of US dollars after meetings between President Joe Biden and Democratic lawmakers.
Asian equities have shown mixed results on exchanges, with entire markets reverting to the Evergrande crisis. Shares in China and Hong Kong made gains early in the session, while S&P 500 futures trimmed the advance. Meanwhile, the US dollar reverses Fed-led gains, falling in tandem with Treasury yields amid cautious mood.
The gold price it is attempting a minor rally to around $ 1765 after the Fed. WTI is trading modestly flat at around $ 72.50, preserving Wednesday’s rally.
Within the G10 basket of currencies, the AUD/USD it maintains its range below 0.7250. The kiwi it recovers from lower levels to trade around 0.7000, as the RBNZ said it would proceed with its proposal to tighten home loans in an attempt to control an inflated housing market.
The rise of USD/JPY it remains below 110.00 amid a pullback in yields. The EUR/USD It is recovering above 1.1700 amid recent encouraging comments on inflation from ECB policy makers, as attention shifts to the euro zone and preliminary US manufacturing and services PMIs.
GBP/USD it is staging a solid comeback towards 1.3650 as traders remain hopeful that the BoE may hint at a reduction in its September monetary policy meeting. Rising inflation expectations in the UK could lead the British central bank to begin policy normalization, with the odds increasing after the optimistic surprise from the Fed.
See Bank of England Preview: Action will revolve around expectations of reduced stimulus
Cryptocurrencies are looking to stabilize, with Bitcoin back around $ 44,000.
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