Daily Market Report
On the other side, the U.S. stock market rally stalled on Wednesday as investors fear a potential surprise from the FED next week, despite the probability of a rate hike remaining at 31% only. Moreover, we have seen an increase in the U.S. trade balance deficit, however, the increase came out below expectations.
Looking at the recent price action, the Dow was the only index among major averages to rise by 0.27%, the Nasdaq ended the day lower losing 1.29% while the S&P 500 dropped 0.38%.
In the meantime, major currency pairs are still trading sideways as traders await the upcoming FOMC rate decision, while gold turned sharply lower after facing strong resistance at the $1970 mark as selling pressure remains intact since breaking below the $2000 psychological support last month. As mentioned earlier, the upside potential is likely to remain limited in the yellow metal until we see a daily close above the 1985 key resistance level. On the opposite, a break below the 1932 support is needed to confirm another extension to the downside in the coming days.
Today, there will be only a few economic releases to follow. In the U.S., investors will be looking at the unemployment claims that are expected to have risen from 232K to 236K, in addition, final wholesale inventories are likely to remain unchanged at -0.2%.