Economic calendar: Fed decision and US retail sales in focus

• European markets set to open higher
• Fed policy decision in the evening
• US retail sales expected decrease in February

Current quotes on the futures markets point to a higher opening of the European cash trading session today. Upbeat sentiment returned during Asian session on rising hopes Beijing will roll out more economic stimulus, while markets stayed optimistic that Russia-Ukraine talks could lead to an end to hostilities. Things are about to get even more interesting later in the day thanks to top-tier events scheduled for today.

The FOMC decision in the evening (7:00 pm GMT) is a key event of the day. The US central bank is widely expected to raise interest rates by 25 basis points. Investors will also be watching for adjustments to the economic outlook, the path of rates and the likely schedule of asset tapering given added uncertainty from the Russia-Ukraine war. 

Apart from the FOMC decision, markets will also get a chance to move during the US retail sales data release (1:30 pm GMT). Oil traders should keep on guard during the release of the DOE report at 2:30 pm GMT after API data showed unexpected rise in oil inventories. Also President Biden is scheduled to speak on Ukraine at 3:45 pm GMT.

12:30 pm GMT - US, retail sales for February.

• Headline. Expected: 0.4% MoM. Previous: 3.8% MoM
• Ex-autos. Expected: 0.9% MoM. Previous: 3.3% MoM

12:30 pm GMT - Canada, CPI inflation for February. Expected: 5.5% YoY. Previous: 5.1% YoY

2:30 pm GMT - DOE report on oil inventories.

• Oil inventories. Expected: -1.375 mb (API: +3.75 mb)
• Gasoline inventories. Expected: -1.579 mb (API: -3.79 mb)
• Distillate inventories. Expected: -1.826 mb (API: +0.89 mb)

6:00 pm GMT - FOMC meeting