NASDAQ Falls by 1.5% after Tech Giants Reports

NASDAQ E-Mini futures fell 1.5% in early trading after the publication of quarterly earnings reports from technology giants Google (GOOG), Microsoft (MSFT) and Advanced Micro Devices (AMD):

Australian Dollar Lower After Soft CPI Data

The Australian dollar has lost ground after Australia’s CPI was lower than expected. In the European session, AUD/USD is trading at 0.6578, down o.37%. The Aussie continues to struggle and has declined 3.4% in January.

Will Fed Hint at a March Hike or Just Leave the Door Slightly Ajar?

I expect Powell and his colleagues may opt for language that leaves the door open to a rate cut in March without giving the impression that it's likely. Flexibility is key at this stage and there's a lot of important data over the next six weeks that could fully justify beginning the easing cycle and policymakers will be very aware of that.

Sunset Market Commentary

The Fed will keep its policy rate unchanged tonight. Back in December, FOMC projections suggested a cumulative 75 bps of rate cuts this year, but Fed Chair Powell didn’t push back against more aggressive market bets at that time.

Anticipating Fed: Potential Disruptions in Dollar’s Calm

The pause in the currency market is dragging on. Over the past two weeks, the Dollar Index has risen 0.15%, although intraday volatility has been within normal limits. This is by no means a balanced market but rather a manifestation of a wait-and-see attitude.

FOMC Removes "Bias" To Tighten, but Don't Expect Imminent Easing

As universally expected, the voting members of the FOMC decided unanimously at their meeting today to make no changes to the Fed's policy stance, keeping the fed funds target range at 5.25-5.50% and maintaining the current pace of quantitative tightening.

Fed Review: In a Risk Management Mode

The Fed remains firmly 'in a risk management mode' as it continues to make progress on both sides of the dual mandate. Powell struck an optimistic tone on inflation, stating that data seen so far has been 'good enough' and that the Fed simply needs to see more similar evidence on disinflation in order to initiate the cutting cycle. There are two-sided risks to starting either too late or too early, but the cuts are ultimately on the way in any case.

Pound Looking to Bank of England for Further Guidance

The pound traded strong over the past couple of weeks and is now  looking to the Bank of England for further guidance. The recent uptick in UK CPI leaves the central bank basically little options but to stress the need for a tight enough monetary policy but it wouldn’t be the first time Bailey surprises. EUR/GBP is nearing critical technical levels at the lower bound of the sideways trading range.

Bitcoin More Comfortable Staying Lower

Bitcoin started the week on Thursday morning, getting support from buyers on the way down towards $42K. Technically, we saw a worrying pullback below the 50-day MA, suggesting an increased chance of further declines. We see evidence of the same on the weekly timeframe. After seven weeks of tight sideways trading and a spike higher, a move lower has been implied. This did not materialise last week, but the price is now cruising below the centre of gravity of the last consolidation.

Australian Dollar Falls to 10-Week Low after Fed Decision

The Australian dollar is sharply lower on Thursday after the Fed policy meeting a day earlier. In the European session, AUD/USD is trading at 0.6514, down 0.78%. Earlier, the Australian dollar dropped as low as 0.6508, its lowest level since November 20.