Until now, there is no definite trend in markets, partly due to the upcoming Fed minutes and holiday in the US. But stock markets did close higher on Tuesday because of the uncertainty over future rate hikes and strong rebound in oil prices. The latter not only supported energy and oil production stocks, but also the overall equity markets in both Europe and the US. This clearly shows that investors are carefully waiting for events that would drive the markets. Resultantly, it led to a decrease in market volumes

The upcoming Fed minutes could be a strong trigger for market movements, where a prevailing hawkish sentiment will prompt a new wave of sell-offs. Meanwhile, a softer tone will lead to a rally, mainly because the market has already taken into account the likely 75 basis point rate hike in December.

On the forex market, there are insignificant movements in the pairs where dollar is present. This is also due to the highly-anticipated Fed minutes and long weekend in the US. Most likely, quotes will move depending on the contents of the protocol, and it will be the same as that of the stock markets. The dynamics of government bonds will also play an important role, in which a noticeable decline in yields would put pressure on USD, while an increase would support it.

Forecasts for today:

GBP/USD

The pair is trading within the range of 1.1740-1.1965. It will break out depending on the contents of the Fed minutes. A rise above 1.1965 might take the pair to 1.2060, while a decline below 1.1740 might push it to 1.1630.

EUR/USD

The pair is rising amid expectations of continued aggressive rate hikes from the ECB. A rise above 1.0350 could it to 1.0435.