Big events ahead - ANZ

Analysts at ANZ explained that there is no shortage of event-risk in currency markets over the next 36-odd hours.

Key Quotes:

"The Fed, BoJ, SNB and BoE all have policy meetings, and we should also get the results of the Dutch general election. Closer to home, local Q4 GDP and Australian labour market figures are out. Some of these events will obviously be more important than others in determining near- term currency market direction (FOMC), but prepare for a few market ruffles.

Markets were generally in a holding pattern ahead of the FOMC, and also as heavy snow disrupted market trading in New York. Sterling stabilized after a sharp early sell off as Brexit fears again gripped markets, but it is highly uncertain as to what direction the pound will take once negotiations get underway.

Oil prices remained under pressure as OPEC data showed Saudi Arabia reversed one third of its production cuts. And while it later clarified that this increased output went into storage, WTI still fell 1.8% to $47.5/bbl.

Despite stronger US PPI data, weaker oil boosted Treasuries, with the yield on the 10-yr note falling back to 2.59%. Equity markets were heavy, with the S&P 500 currently down 0.5%, while the Euro Stoxx 50, CAC and FTSE finished 0.5%, 0.5% and 0.1% lower respectively."