The market is waiting for the Fed

Financial markets should remain rather cautious today ahead of the end of the Fed meeting. We do not expect any policy change, but the tone of the statement and comments from Jerome Powell will be closely monitored. Inflation expectations continue to rise, pushing US bond yields and the USD higher. The European Union lives in another world made of vaccine shortages and endless containment. The EUR/USD pair is trading around 1.19.

Car registrations in Europe were down by around 20% yoy in February to record-low levels for this period of the year.