Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Evergreen buck stabilizes ahead of Fed
On Wednesday, public holidays along with the approach of the Fed’s monetary policy statement are keeping a tight lid on foreign exchange movements, with the common currency holding on to most of its profits after a firmer-than-anticipated first quarter GDP report on Tuesday.
With EU and Japanese markers closed, the US major bank’s statement as well as Fed Chair Jerome Powell's subsequent press conference will most probably overshadow everything else on Wednesday.
A decision to keep official rates intact appears to be a foregone conclusion. Therefore, market focus will probably be on the Federal Reserve’s interpretation of the previous week’s GDP report. Experts argued that the underlying dynamic of the American economy happened to be weaker than the suggested annualized surge figure of 3.2%, although not weak enough to guarantee cutting interest rates.
The common currency was worth $1.1223, surpassing Tuesday’s outcome by about 0.1% against the backdrop of suspicions that the Eurozone GDP report on Tuesday might not have been as firm as it looked.
Aside from that, the UK pound was staying above $1.3000.
Estimating the greenback’s purchasing potential versus its main rivals the USD index was worth 97.205, standing still.
In addition to this, the probability of China and America striking a trade deal has increased following reports that America had dropped one of its major demands, which is its insistence that China should cease alleged instances of cyber-theft. As some sources state, it has made a watered-down trade agreement more real.
Negotiations can’t resume indefinitely, and both sides require a win. Experts added that American leader might not always obtain he wants.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.