Yesterday's meeting of the US Federal Reserve held no real surprises. Markets focused on Jerome Powell's statement ruling out a rate hike this year, giving an accommodative stance.
➡️ Yesterday the US Federal Reserve held a policy meeting that produced no real surprises. Fed Chair Powell threw cold water on the prospect that the Fed's next move on rates will be a hike and reaffirmed that a cut remains likely later in 2024. That led to gains for stocks and triggered a mild selloff in the dollar USA.
➡️ It seems likely that the Bank of Japan intervened yesterday in currency market buying yen. This pushed the Yen sharply higher for a few hours, but Yen sellers reacted, and the Yen has since given up most of its gain. The USD/JPY currency pair appears to have found support at ¥153.87.
➡️ There is an almost universal expectation that rates will be held and the Fed will declare that it cannot cut rates until there is progress in reducing persistently persistent inflation. There is no consensus expectation of a rate cut until November this year. The US dollar is rising and is very close to the new 6-month high, while the stock markets they collapsed on the last day.
➡️ Nel Forex market , since Tokyo opened today, the strongest major currency has been the Australian dollar, and the weakest major currency has been the Japanese yen, putting into focus the AUD/JPY currency cross.
➡️ Copper futures recovered slightly yesterday after hitting new 2-year highs on Monday.
➡️ Today there will be two high-impact data releases:
- CPI Swiss (inflation)
- Unemployment claims in the United States
➡️ Yesterday there were several high-impact data releases:
- Change in ADP Nonfarm Employment: This forecast was slightly higher than expected.
- Trailing Manufacturing PMI – more or less as expected.
- ISM Manufacturing PMI – more or less as expected.
- JOLTS Job Offers – slightly worse than expected.
Credit by DailyForex.com