Good morning. Today, the long awaited decision on whether the Federal Reserve will increase interest rates in September will be made. The FOMC will conclude its 2 day meeting and at 18:00 GMT, Fed chair Janet Yellen will announce the committee’s decision.

Yesterday, following a slow start to the European session, stock markets enjoyed a welcome boost during U.S session, with the Dow Jones closing at its highest level in 4 weeks.
This morning, Asian stocks have edged up slightly to a 3 week high, whilst the Dollar drifted slightly lower as investors consolidate positions ahead of tonight’s nail-biting decision.

Oil surged 6% yesterday, its strongest one day move in September following data released showing a surprising drop in domestic stockpiles. Despite the price surge, the black gold continues to remain under pressure as demand remains low.

Gold also recorded its best one day gain in more than one month, closing the day at 1119.72. Having broken past its previous resistance levels, the RSI is now supported by a rising trend line so we may see further upward momentum.

GBPUSD also posted its biggest one day gain in almost two months, following Bank of England governor Mark Carney, stating that interest rates could be raised in early 2016.
Things are definitely heating up and traders should be prepared for a volatile day of trading offering up plenty of opportunities.

News wise today, aside of the FOMC, we have retail sales from the U.K at 08:30 GMT and building permits and unemployment claims from the U.S at 12:30 GMT. Also, watch out the Swiss libor rate decision this morning at 07:30 GMT.

Join us later for the U.S bullet report where we will be reviewing the key things to listen out for during Janet Yellen’s conference tonight.

Trading quote of the day:

“A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate with working smarter. In fact, sometimes is the other way around.”