Forex Today: Asian Stocks Follow US Higher as Fed Awaits

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Stock markets are broadly higher, including in Asia over today's session, as markets await a strongly anticipated rate cut by the Federal Reserve later this week.

1. This is a big week for major central bank meetings. Both the US Federal Reserve and the Bank of Canada are overwhelmingly expected to cut their respective interest rates by 25%, with the market pricing in an 84% chance of a Canadian cut, and a 92% chance of a US cut of 0.25% plus an 8% chance of a deeper 0.50% cut.
2. The rate-cutting atmosphere is helping send stock markets higher. As today's Asian session draws to a close, it looks as if the Nikkei 225 Index, The KOSPI Composite, and the HSI will all close higher on the day.
3. Last Friday saw bullish movement in the US stock market, with both the broad S&P 500 Index and the tech-based NASDAQ 100 Index printing new record high prices. Trend traders will still be interested in being long here.
4. Gold and Silver are looking bullish, especially Silver which made a new 14-year high price last Friday. Gold remains near its record high made last week at $3,674. Trend traders will remain interested in being long of both.
5. The Forex market has been very quiet so far this week, with prices changing little over today's Tokyo session. The strongest major currency so far is the Australian Dollar, with the weakest being the Swiss Franc.
6. It may be a relatively quiet day in the market as it is a Monday with no high-impact data scheduled.
7. It is a public holiday in Japan today.