All Articles Tagged - Fed

US Open Note – Dollar rally stalls despite strong jobless claims and PPI

Posted on May 13, 2021 at 1:10 pm GMT

Jobless claims fall again but dollar slips The producer price index and initial jobless claims out of the United States are in the spotlight today after last week’s disappointing jobs report and the surprise jump in inflation yesterday. US initial jobless claims declined to 473 thousand in the week ended May 7 versus 490K forecast after Wednesday’s inflation shock and the Federal Reserve was clear that the employment outlook will have to notably rise before there is a change in monetary policy. Annual inflation climbed to the [..]

US Open Note – Fed decision in spotlight; dollar rises near 109 yen

Posted on April 28, 2021 at 1:11 pm GMT

FOMC meeting in focus; dollar heads higher The major highlight of the day is the Federal Reserve’s policy announcement at 18:00 GMT. Policymakers will likely recognize the fast economic recovery from the pandemic as the progressing vaccination program brightens the outlook for the economy. Despite that, the central bank is expected to keep interest rates steady within the target range of 0-0.25% and its monthly bond purchases stable at $120 billion. Following the Bank of Canada’s bond tapering announcement, investors will be eaerly waiting to hear whether the Fed is also planning [..]

FOMC policy meeting: policymakers may keep their cards close to their chest – Forex News Preview

Posted on April 27, 2021 at 3:08 pm GMT

The Fed’s policymaking arm will conclude its two-day policy review on Wednesday, with the announcement and the press conference expected to hit the headlines at 18:00 GMT and 18:30 GMT respectively. There are rumours that bond tapering talks may wrap up, but board members will probably keep the cards close to their chest and maintain the same guidance even if Q1 GDP growth figures due on Thursday and core PCE inflation data on Friday surge. If the Bank hints at [..]

US Open Note – Market in calm tone ahead of earnings and FOMC

Posted on April 27, 2021 at 12:57 pm GMT

Dollar and euro tick up The greenback is regaining some ground versus the Japanese yen, holding around 108.40 ahead of the Federal Reserve policy decision tomorrow, no changes are expected in policy settings. The dollar index is still moving with weak momentum near 91.00 and below the 50-day simple moving average (SMA). Jerome Powell will give hints on whether improving economic conditions justify a tapering of monetary easing. Euro/dollar is flattening, remaining below the two-month high at 1.2116 and pound/dollar is surpassing the 1.3900 number. In commodity [..]

Dollar turns to Fed minutes as traders call rate bluff – Forex News Preview

Posted on April 6, 2021 at 2:49 pm GMT

The minutes of the latest FOMC meeting will be released at 18:00 GMT Wednesday. The Fed went out of its way to signal that rates will remain on the floor until 2024, despite the trillions in spending from Congress and the accelerated vaccination program. However, traders are saying that’s a bluff. Market pricing still implies a rate increase by late 2022. Even if the minutes reaffirm the Fed’s cautious message, the overall picture for the dollar still seems positive. Markets [..]

US Open Note – US futures slip, dollar edges up and pound eases after BoE decision

Posted on March 18, 2021 at 1:32 pm GMT

Dollar points up again; Pound eases after BoE decision Thursday brought some mild risk-on trading back on the surface after the release of the Bank of England (BoE) decision, which comes hot on the heels of the Fed’s dovish statement yesterday. The US dollar moved broadly higher as the euro/dollar fell to around 1.1925, below the 200-day SMA, while cable is declining slightly after the dovish Bank of England (BoE) decision to hold interest rates at a record low of 0.1%. Policymakers mentioned that UK GDP is anticipated recover during 2021 to achieve reach pre-coronavirus levels, [..]

Fed meeting: Keep a close eye on those dots – Forex News Preview

Posted on March 15, 2021 at 2:20 pm GMT

The Fed will conclude its latest meeting at 18:00 GMT Wednesday. Markets are pricing in a rate increase by late 2022, so all eyes will be on the ‘dot plot’ of rate projections to see if a hike in 2024 is still the central scenario for policymakers. With trillions in federal spending coming, some officials may bring forward their rate hike forecasts. This could lift the dollar initially, though Chairman Powell may push back on such expectations during his press [..]

US Open Note – Dollar pushes up after strong NFP report

Posted on March 5, 2021 at 2:03 pm GMT

NFP report drives dollar even higher It’s NFP day and markets just got an update on the speed and direction of the country’s labor-market recovery. The US economy added 379k jobs compared to market expectation of a 182k rise and 49k before, while the unemployment rate fell to 6.2% from 6.3% in the preceding month, amid easing business restrictions, falling coronavirus infection rates, a fast vaccine rollout and continued support from the government. Markets are still focusing on the imminent $1.9trln of stimulus package and an ultra-dovish Fed. The spike [..]

US Open Note – Markets in risk-on tone; Dollar still flies

Posted on March 3, 2021 at 2:05 pm GMT

Stocks and dollar in slightly positive tone; Fed announces Beige Book The market seems to be calmer today. European equities are holding onto gains, while US futures indicate a positive open. The US dollar index jumped to a one-month high of 91.39 yesterday, before retreating around 91.00. Dollar/yen continues the upside rally towards a fresh six-month high above 107.00. Stimulus negotiations are likely to go into overdrive this week as President Joe Biden’s $1.9 trillion Covid-19 relief bill goes to the US Senate. Also, the Fed announces its Beige Book report. Since [..]

Week Ahead – Fed meeting, barrage of data, and tech earnings

Posted on January 22, 2021 at 12:22 pm GMT

With President Biden now in office, markets will be on alert for any remarks from US Senators about whether they’d support the massive stimulus bill he proposed. A tough negotiating battle could see the final proposal being watered down. The Federal Reserve will meet as well. No policy changes are on the menu, so Chairman Powell is likely to reaffirm that it’s too early to discuss tapering. There’s also a blitz of economic data, including fourth-quarter GDP from America and [..]

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