Markets Await The FOMC As Politics Dominate

Following the strong trends of earlier in the day, it was no surprise to see forex markets consolidate and move sideways as the London forex session moved into the US, and ahead of the FOMC minutes later in the day. What was interesting and highlighted earlier, was the impact of the UK CPI data, normally an important release and one guaranteed to move local markets, but with politics taking centre stage, such data is relegated to the ‘also ran’ class, with market reaction muted. Brexit and all that this entails is a far bigger game in town, and so the reaction to any fundamental news carries less impact as a result, and likely to do so for many months to come.