Dollar to be tested by FOMC

29 April, 2015

Ahead of the FOMC it’s the turn of the US to release GDP data today which is expected to see the Q1 annualised rate decline from 2.2% to 1.1%. This evidences the drive of GBPUSD’s recent strength and yesterday’s poor US consumer confidence data allowed “cable” to forget the weaker than expected UK GDP data and push on higher above the 1.5300 level, to an almost two month high. So, at this month’s FOMC meeting the Fed has had to consider a very poor nonfarm payroll number earlier in April, weak retail sales, negative industrial production, weak inflation and then bad consumer confidence yesterday all adding to a seemingly never ending run of worse than expected economic data. It’s little wonder that the Fed is likely to reduce their growth forecasts and the calls for a June rate hike are being fewer and fewer with more people joining the autumn camp for the commencement of tightening.

Before we get the release of the US GDP data at 13h30 London time, this morning we see Eurozone consumer confidence as well as economic and business sentiment. This could affect EURUSD which is on the cusp of recapturing the 1.1000 level, but the main driver of the euro’s recent rally against the dollar has been the Greece situation where investors have apportioned a little less risk to the threat of a Grexit.


Source link  
US FOMC expected to raise rates again

UK Consumer Price Index (YoY) (May) is expected out at 2.5% against 2.4% previously. Producer Price Index – Input (YoY) (May) is expected...

PMI expected to weaken further

UK Construction PMI (May) will be out with an expected headline number of 49.7 from a prior number of 52.5. The consensus is for a drop in the numbers...

BOE Expected to Keep Rates at 0.5%

UK Industrial Production (YoY) (Mar) is expected to be 3.1% against a previous 2.2%. Industrial Production (MoM) (Feb) is expected to be 0.2% against...


Consumer Price Index Takes Centre Stage

UK Budget Report will be released. This is a mini-budget and outlines the government’s updated budget for the fiscal year, including infrastructure...

US earnings hit sweet spot for markets

The US Nonfarm Payrolls data released on Friday showed a strong increase in job creation and, combined with the lower than expected increase...

Bank of Japan interest rate decision

The Bank of Japan Interest Rate Decision was as expected and left unchanged at -0.1%. The Japanese 10-Year JGB yield target is around zero percent...


Oil Gains and GBP Stumbles

On Tuesday, the American Petroleum Institute said crude stocks in the United States fell by 7.4 million barrels last week. That is almost twice...

Geo-Politics will be the focus of the week

This week will be dominated by Geo-Politics as the US Tax Bill needs to be reconciled between the Senate and House, whilst UK Prime Minister...

Positive Economic Data for Euro and UK

Data released on Thursday from Markit Economics showed eurozone’s thriving economy powered ahead in November, with new manufacturing orders...

  


Share: