The two central banks Fed and the Bank of Japan will come out with important announcements today . This is on such rare occasions that two major Central Banks are expected to come out interest rate comments on the same day !
Thus the global currency market may see some added volatility . This volatility will finds its way into equity markets .
The expectation of a rate hike by Fed in December is growing . We have to see how the market reacts once the same looks more probable .
In case the Japanese Central bank does not cut interest rates further into the negative territory we will see JPY strengthen against other currencies . In any case the expectations are too high thus some JPY strength can be expected after the announcement .
The Fed on the other hand will have to take a more definitive stand on rate hike in December . We may see some weakening in INR in the next few days .
Indian equity markets may open soft and trend sideways . The odds of some correction will increase based on the Fed stand on interest rates .