The markets were calm today, before the US Federal Reserve announcing the interest rate decision. The economic calendar was not full of major economic events during the day, so the markets were looking to see what the Fed will release tonight
.the FED kept interest rates unchanged at 1.25%, but indicated that the FED balance sheet reduction program starts in October by 50$ billion per month. It also kept expectations for a rate hike one more time this year, bolstering the strength of the US dollar as it reached its highest level since 14 September at92.47.
UK retail sales were the most prominent on the economic calendar this morning, rising by 1% in August and beating expectations for a 0.2% rise, while the July reading was revised up to 0.6%. Following the data, GBP rose against of most of its rivals, especially the US dollar, the GBPUSD reached to its daily high of 1.3606.
On the other hand, the markets await the speech of British Prime Minister Theresa May on Friday in Florence, Italy, considering reports that Britain could submit a financial settlement of 20 billion euros to break the stalemate in the negotiations during the last three months and then move to the second phase of negotiations of Brexit.
Oil prices have risen almost 2% since the start of trading today, despite the rise in US crude oil inventories in light of the oil producers achieved the biggest gains in the third quarter over 13 years after the announcement of Iraqi Oil Minister that OPEC and its partners consider the extension of the agreement to reduce production or perhaps Deepen production cuts further. Currently, after oil prices stabilize higher than the strongest support level at 49.75$, now prices trying to stabilize higher than the strong resistance level at 50.85$ a barrel. If successful, we may see prices heading to 52$.