Yesterday, U.S stocks indexes closed mixed as investors are waiting for the result of Federal Reserve two days policy meeting starting later today. Dow Jones Industrial average shed 21 points and closed at 20881, S&P 500 slid 1 point and closed at 2373 and Nasdaq composite up 14 points and closed at 5875 making its fourth session winning streak.
U.S dollar wavered a bit because of investor’s cautiousness ahead of Federal Reserve meeting and other central bank and political events scheduled for the week. Apart from Federal Reserve meeting, Bank of Japan, Norges Bank and bank of England will also have their meeting in this week. Federal Reserve is widely expected to increase the interest rate in its upcoming meeting.
Euro pushed higher in today’s Asian session resuming its recent upward trend. The upward movement was supported by the shift in Central bank of Europe’s shifting away from easing and also the concerns about the outlook of UK’s economy.
Last week European Central bank indicated that it might not take further easing steps despite of the caution over the Netherland election. Investors are anticipating that if ECB remains neutral, it would further strengthen the euro against the pound in short term.
Investors are also watching closely the result of Netherland election expected to be out on Wednesday, the result could be a catalyst in gauging the extent of risk of single currency breakup.
Netherland election result will indicate how the Brexit and Trump win trend translated in Europe. After both houses of UK parliament passes the way for talks to begin the exit of UK from EU, pound maintained its overnight gain.
Australian dollar is trading lower, which is supported by the decrease in business sentiment. According to National Australia Bank, business condition index dropped 7 points to 9 and business confidence fell 3 points to 7. This business survey is closely watched by the Reserve bank of Australia.
A separate ANZ survey shows the decrease in consumer sentiment to 0.7% last week. Investors are watching now the Australian employment data expected to release later this week.