It's another big day for trading with a number of potentially market-moving developments, as commodities and resource stocks remain in the spotlight.

Copper and crude oil are extending their rallies with oil getting a boost from a huge 10.2 mmbbl drawdown in US API inventories. Oil and other energy markets may remain active through today's DoE report where a 3.0 mmbbl drawdown is widely expected.

With commodity prices climbing, resource-weighted indices continue to outperform. The FTSE is up 0.6% and Australia's S&P ASX rallied 0.9%, a positive sign for trading in Canada today. The DAX is up 0.4% while US index futures are up marginally.

It's another big day for earnings reports, which could spark action in individual stocks and sectors. Last night, Canadian National, Texas Instruments, Chipotle, Amgen and others continued the trend of most companies beating the street by more than a penny. Strong earnings reports continue this morning led by big beats from Boeing, Ford and Hershey. Facebook is the next top tech stock to report after the close today. Given the shares strong performance so far this year a big report may be needed to maintain enthusiasm, particularly since Google sold off following its results. 

Currency markets have been steady this morning for the most part. GBP is up against USD and EUR making Sterling the top performer so far. USD driven forex trading could pick up in the afternoon on the FOMC decision. A move on rates is unlikely but traders will likely focus on the statement for hints of future plans. 

The street on the surface appears to be expecting the Fed to be preparing to start trimming its balance sheet in September, and another rate hike in December. I'm not convinced they will do anything in September due to the looming budget battle, especially with Congress still focused on health care reform. The USD has been in retreat for the last month indicating traders expecting a less hawkish Fed relative to other central banks. Hawkish talk could spark ‎a rebound in the greenback. 

 

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