FOMC Technical Preview
What’s in Today’s Report:
- FOMC Technical Preview
- Retail Sales Data Takeaways – Signs of Weakness in Consumer Spending
Futures are higher as investors continue to monitor the geopolitical tensions in the Middle East and digest largely as expected European inflation data ahead of the Fed.
Economically, Eurozone HICP fell to 1.9% from 2.2%, as expected, while UK CPI edged down to 3.4% vs. (E) 3.5% which is supporting a bid in the global bond market with yields falling moderately in premarket trade.
Today, there are two economic reports to watch: Jobless Claims (E: 244K) which come a day early, and Housing Starts and Permits (E: 1.360M, 1.430M). Another sharp rise in jobless claims could bolster concerns about the health of the labor market but a big reaction from markets is unlikely given the looming Fed decision.
Speaking of which, the primary focus of today’s session will be the FOMC Announcement (2:00 p.m. ET) and Fed Chair Powell’s press conference (2:30 p.m. ET) as investors look for clarity on the future path of monetary policy.
There are two late season earnings releases to watch as well: ACB ($0.11) and KFY ($1.25) but with the Fed in focus, neither should materially move markets today.