⏰ The Fed meeting is always the most important calendar event of the week. Can they keep the markets climbing?
QE purchases in the spotlight
Do not expect any decisions from the Fed today – they like it what it is. The big spending (Biden) plan needs funding so QE will remain unchanged for months. There has been some talk about possible QE tapering later this year and President Powell will try to dispel it – if he cannot, markets may become nervous.  Therefore it’s conference (7:30pm GMT) and not the decision (7pm) that will be watched.
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For those who wonder if the Fed addresses criticism that their policies led to wild speculation of which GameStop was the latest example -Â they will not. Powell will stick to his rhetoric that all they do is to promote a dual mandate of price stability and full employment.
Market to watch: US100
Clearly US100 is the market that has benefited from the FOMC policies the most so it has also the most to lose. While this policy is likely to stay extremely supportive, bear in mind that the market is close to upper limit of the channel and we are just looking at a pullback attempt. Â
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