Markets mixed ahead of Fed rate decision - 19.3.2025

The Dollar weakening has reversed currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, ended 0.2% lower on Tuesday.

Both GBP/USD and EUR/USD slowed their advancing yesterday while the ZEW survey showed German confidence surged in March. Both Pound and euro are lower against the dollar currently. USD/JPY slowed its climbing while AUD/USD reversed its their sliding on Tuesday with the yen flat against the Greenback currently and Australian dollar lower still.

Futures on three main US stock indexes are mixed currently with the yield on benchmark 10-year US notes up at 4.298% ahead of conclusion of two-day Fed meeting that started yesterday. The central bank is widely expected to keep rates unchanged. Stock indexes ended lower on Tuesday recording daily losses in a range of -1.7% to -0.6% led by tech shares.

European stock indexes futures are mixed currently after closing higher on Tuesday as Germany’s Bundestag voted in favor of a major fiscal package which creates exemptions to long-standing debt rules enabling a 500 billion euro infrastructure and climate fund. Asian indexes futures are mixed today with Japan’s Nikkei leading losses after the Bank of Japan kept its benchmark interest rates unchanged at 0.5% in line with market expectations.

Brent is edging lower currently. Prices fell about 1% yesterday as Russian president Putin agreed to president Trump’s proposal that Russia and Ukraine cease attacking each other’s energy infrastructure for 30 days. The Energy Information Administration (EIA) will release its US inventory data at 15:30 CET today. The US oil benchmark West Texas Intermediate (WTI) fell 1% and is lower currently. Brent lost 0.7% to $70.56 a barrel on Tuesday.