Shares in the Nikkei225 are sliding into the close as the index clocks up losses of 166 points. The Hang Seng, is still trading higher on the day, up 180 points at the moment but is paring earlier gains into the close.
Trading though is very muted as the FED meeting kicks off later today and other Central Bank meetings come to the fore. Both the Bank of Japan and the Bank of England will be announcing their own rate decisions later this week.
Whilst a rate cut isn’t expected this time round by the FED, traders will be hanging off every word for any sign or concrete evidence that there is likely to be one this year.
With relatively little economic data to entertain the markets, we expect markets to drift again today, trading in tight ranges as investors adopt a wait and see approach ahead of the major announcement Wednesday and Jerome Powell’s conference that follows.
Sterling has dipped below 1.2560 but holds above the 1.2500 level, currently trading at 1.2532. I am persevering with my position, accumulating slowly at these levels and expecting 1.2500 to hold firm and provide a platform for a move higher