XE Market Analysis: Europe – Dec 19, 2018

The Dollar has traded softer so far today as markets anticipate a “dovish hike” from the Fed today, being a 25 bp tightening complemented by a signal that policy is going neutral. There has been some speculation that the Fed might even refrain from hiking, though we are doubtful this will happen. Stock markets in Asia have been mixed, while S&P 500 futures are showing a gain of 0.6% in the overnight session following a flat performance on Wall Street yesterday. EUR-USD has remained buoyant, holding a narrow range in the upper 1.1300s, just of yesterday’s nine-day high at 1.1402.