(31 JULY 2018)DAILY MARKET BRIEF 3:Fed FOMC meeting expected to remain muted on Wednesday

As already mentioned in Fed’s minutes and during Jerome Powell’s testimony to the Senate, we expect the Chairman of the Federal Reserve to maintain a positive economic outlook for the US economy. The dragging trade war concern that the US President Trump administration is triggering remains a major risk for the central bank, whose changes of sentiment could lead the USD downward. For now, Powell considers current risks for the economy to be balanced. No change in current policy rate is expected. This should not happen until next monetary policy meeting on 26. September 2018.

By Vincent Mivelaz