The European markets are getting ready to start trading Tuesday morning. European traders, like their Asian counterparts this morning, are taking a cautious tone. Traders are looking towards the start of the Federal Open Market Committee (FOMC) monetary policy meeting today with a rate decision scheduled for tomorrow.
The Fed is looking at slowing global economic growth and most traders feel that the FOMC will not raise rates or change monetary policy tomorrow. The Federal Reserve, however, is anticipated to lower rate forecasts, also known as “dot plots,” and could take a dovish tone that will pause rate hikes for the remainder of the year. Right now they are expected to raise rates one time in 2019.
Looking at futures, according to the firm IG, the FTSE 100 is down 12 points at open. The French CAC 40 is shown opening ten points lower and the German DAX is shown opening down ten points as well.
European Traders Eye Brexit Headlines
There are renewed concerns over Brexit on the European continent and in the United Kingdom. This saw the benchmark GBP/USD Forex market hit an overnight low at $1.3183. The UK speaker of Parliament said that Prime Minister Theresa May is not allowed to bring her divorce deal to a new vote until it is in a “substantially different form.”
PM May has only two days left to secure approval for her Brexit deal or leave the EU without a deal. She is scheduled to meet with EU dealers on Thursday to ask for more time.