A look at the day ahead in European and global markets from Kevin BucklandThere's no escaping that it's all about the Fed today.
And the energy around the meeting has been supercharged by the surprisingly soft inflation data that saw traders all but clear the table of any remaining rate hike bets.
Investor focus then falls on the language around the decision, with much being made of Fed officials' recent preference for the slightly more hawkish phrase "skip" instead of "pause," to reinforce the idea that the tightening cycle is not yet done.
The British currency has the additional tailwind from continued strong wage growth in data yesterday, boosting bets for continued tightening ahead of the Bank of England's policy decision next week.
Today, economists predict slightly better GDP growth in April from the previous month, but a decline in industrial output.
Persons:
Kevin Buckland There's, There's, Kevin Buckland, Sam Holmes
Organizations:
Fed, Japan's Nikkei, Federal Reserve, Bank of, ECB, CPI, PPI U.S, Thomson
Locations:
Europe