The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
The market awaits the Fed decision
The Federal Open Market Committee will publish its statement and announce an official rate on September 18, at 21:00 MT time. After that, there will be a press conference conducted by the Fed Chair Jerome Powell at 21:30 MT.
According to analysts, the Federal Reserve will cut its interest rate from the 2.25-2% to 1.75-2% range. If it happens, that will be the second rate cut of this year. In addition, economists will be waiting for the “dot plot” (statistical chart used by the Fed to convey its rate outlook), where the Fed representatives will reveal their projections of the changes to the interest rate during the next meetings. Besides that, the comments by the Fed Chair Jerome Powell may throw some clues on the future path of the regulator’s monetary policy.
• If the Fed cuts its rate, the USD will fall;
• If the Fed does not cut its rate, the USD will rise.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
Stocks, oil and GBP gain on risk-on sentiment
Investors weigh reopening economies against the growing US-China tension. Which impulse will be stronger?
Here you’ll find fresh news that drive the market today.