Three weeks after the meeting on May 1, several variables changed their trend and although these data do not imply an imminent change in the Fed’s perspective, they could anticipate possible adjustments in monetary policy in the coming months.
Markets in suspense: investors await Fed minutes
Freepicks
After two days with few alternatives in the main currency pairs, markets anxiously await the publication of the Minutes of the last monetary policy meeting of the Federal Reserve. It should be remembered that at that meeting, the Committee kept the interest rate unchanged, while President Jerome Powell reaffirmed the organization’s willingness to maintain the status quo for a prolonged period.
However, three weeks after the May 1 meeting, several variables have changed. On the one hand, non-farm employment data showed signs of weakness for the first time in a long time, with a figure below expectations and a slight increase in the unemployment rate. Retail sales, reported last week, remained stable, while inflation remained in line with forecasts, slightly below previous measurements.
Although these data do not imply an imminent change in the Fed’s outlook, could anticipate possible adjustments in monetary policy in the coming monthsa prospect that Wall Street celebrates with historic records day after day.
Markets in suspense
The global dollar reaches this point showing some short-term weakness against the euro and sterling, but remains strong against the yen and Swiss franc.
The euro manages to remain firm above 1.0830, despite rumors of rate cuts by the European Central Bank, which are dissipating as the organization’s next meeting approaches. A break above 1.0900 could push the euro towards levels like 1.0930 and 1.0955, while a break of 1.0830 would change its outlook for the rest of the day.
The British pound remains at two-month highs above 1.2700, although without significant changes in the last 48 hours. A break of 1.2670 could modify the bullish bias of the British currency, with supports at 1.2630 and 1.2590 for the rest of the day. The resistances to watch are 1.2725, highs of the month, and 1.2755. The pound is awaiting the release of UK inflation data, which could be below previous levels.
The yen shows weakness, trading at 156.22, although without substantial changes at this time. The 4-hour chart continues to favor the dollar, with the Japanese currency facing the rise of the Nikkei 225 in Tokyo and high Treasury bond yields.
Gold stabilizes after a turbulent start to the week, trading at $2,422, with an uptrend on the 4-hour chart, although no major technical indicators for the rest of the day. A break of $2,449, the all-time high reached on Monday, could boost the precious metal’s gains; while a break of $2,400 could change the ounce’s current bias.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
