Dec 14th, 2015: Markets Eye Wednesday Fed

• Everything coming before this Wednesday’s Fed meeting is likely to be overshadowed, as the Fed prepares to raise interest rates for the first time since the financial crisis. Expectations are for just a 0.25% rise, but there is still an outside chance of no change whatsoever. As such, we could well see a quiet Monday and Tuesday. As it is, the Dollar gapped higher at the open, with the USD/ JPY pushing away from last week’s lows.

• The Australian dollar has been the most aggressive this morning, starting the week with some solid gain after last week’s losses.

• The euro is likely to continue backing and filling until the Fed decision as it has for the last week or so.

Coming up today: 

• Today we have ECB president Draghi speaking at 11.00, followed by MPC member Shifik speaking at 12.00.

Trade Idea: 

• Gold has been stuck in a tight range since the middle of November, but positive action from the FOMC could see the precious metal break out.

• A good way to play this is an IN/ OUT trade predicting that gold will close outside of either $1100 or $1000 in 14 days for a potential return of 252%.

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