The AUD is the strongest and the USD is the weakest as NA traders enter for the day

The Fed will kick off the rate hike cycle today with a rise of 0.25 basis points most likely. That is the amount that the Fed chair Powell indicated at his testimony a few weeks ago. The rise in gas prices and concerns about the impact from the Russia/Ukraine war is likely to keep that rise at that level. However, the market will be looking for signs that a 50 basis point acceleration might be in order sooner rather than later if inflation continues to be elevated and expectations rise as a result. The Fed will also release its central tendencies (GDP likely lower for 2022, inflation likely higher, employment probably around the same), and projections from its dot plot. In December, the Fed targeted three hikes in 2022. The market expects more like seven. The Fed will likely be in the 4 to 5 hike range.

Ukraine president Zelensky will speak remotely to the U.S. Congress today. There have been overtures from both sides that a agreement might be closer, but Russian Pres. Putin also said that Ukraine was not serious in wanting a cease-fire. Russian government debt payments are expected to go into default, as it has signaled it wants to make interest payments in rubles versus the US dollars due to the sanctions.

In China, the government and central bank said that they would support the economy and particularly the financial markets. The Chinese stocks had their biggest one-day gain in years. The Hong Kong’s Hang Seng index rose 9.08% on the day. That was the best day since October 2018. Even still, the index is down 2% on the week after having heavy losses. The Shanghai composite index rose 3.48% and the Shenzhen index rose by 4.01%.

There is a heavy economic calendar ahead of the FOMC decision with Canada CPI data, US retail sales, and import/export prices all released at 8:30 AM ET. At 10 AM, business inventories and NAHB housing pricing data will be released.

US stocks are higher in premarket trading as are European shares. Crude oil is up modestly. Gold is also up modestly US yields are little changed as well.

A snapshot of the markets currently shows:

• Spot gold trading up three dollars or 0.15% at $1922
• Spot  silver 
  Silver
  
  Silver is a precious metal that is commonly traded on exchanges or through brokers. It is much more affordable than gold and thanks to its importance as an industrial metal as well as volatility, is widely traded.For precious metals traders, gold is a much more popular market. Big institutions buy gold as a currency hedge when real interest rates and yields on other assets become unacceptably low. Central banks will buy gold, not silver, as a reserve asset to diversify their currency exposure.Instead, silver functions more heavily as a commodity than a currency. Silver, also known as the white metal, is commonly linked with gold and the relationship between the two often dictates its price. The entire silver market is worth about only $540 billion currently, which makes it much smaller than other markets.Despite its smaller size in market share, the price of silver can oscillate strongly without a lot of money moving into it.The supply of silver grows only by only 1 to 3 percent each year, and about half the market is consumed through industrial use (unlike gold, which is more limited in how it’s used).As of August 2020, there are 19.2 billion ounces of silver reserves globally (meeting certain purity standards) against 1.83 billion ounces of gold reserves.How to Trade SilverThe most common way for retail traders to get exposure to silver is through exchange-traded-funds (ETFs) or contracts-for-difference (CFDs). Both are typical offerings at retail brokerages.Investing in silver CFDs saves you the inconvenience of paying for silver storage. Moreover, CFDs give you the opportunity to trade silver in both directions. Many retail investors prefer trading silver through CFDs with brokers as there is no large fee for physical delivery or commission that can erode potential profits.
  
  Silver is a precious metal that is commonly traded on exchanges or through brokers. It is much more affordable than gold and thanks to its importance as an industrial metal as well as volatility, is widely traded.For precious metals traders, gold is a much more popular market. Big institutions buy gold as a currency hedge when real interest rates and yields on other assets become unacceptably low. Central banks will buy gold, not silver, as a reserve asset to diversify their currency exposure.Instead, silver functions more heavily as a commodity than a currency. Silver, also known as the white metal, is commonly linked with gold and the relationship between the two often dictates its price. The entire silver market is worth about only $540 billion currently, which makes it much smaller than other markets.Despite its smaller size in market share, the price of silver can oscillate strongly without a lot of money moving into it.The supply of silver grows only by only 1 to 3 percent each year, and about half the market is consumed through industrial use (unlike gold, which is more limited in how it’s used).As of August 2020, there are 19.2 billion ounces of silver reserves globally (meeting certain purity standards) against 1.83 billion ounces of gold reserves.How to Trade SilverThe most common way for retail traders to get exposure to silver is through exchange-traded-funds (ETFs) or contracts-for-difference (CFDs). Both are typical offerings at retail brokerages.Investing in silver CFDs saves you the inconvenience of paying for silver storage. Moreover, CFDs give you the opportunity to trade silver in both directions. Many retail investors prefer trading silver through CFDs with brokers as there is no large fee for physical delivery or commission that can erode potential profits.
  Read this Term is up one cent or 0.05% at $24.89
• WTI crude oil futures are trading at $96.84 up $0.38
• Bitcoin is trading back above the $40,000 level at $40,556. It traded as high as $41,693.97 and as low as $38,865.67 in overnight trading.