Daily digest market movers: EUR/USD will dance to the tunes of the Eurozone/US preliminary PMI
- EUR/USD trades in a tight range below the round-level resistance of 1.0900. The shared currency pair is expected to remain quiet as investors shift focus to the Federal Open Market Committee (FOMC) minutes for the May meeting, which will be published on Wednesday. The FOMC minutes will provide a detailed explanation behind interest rates remaining steady and policymakers’ views about the interest rate outlook.
- The communication from Fed policymakers on the interest rate outlook is expected to have remained hawkish as inflationary pressures in the first three months of this year accelerated. However, the Consumer Price Index (CPI) data for April declined as expected due to lower prices of utility gas piped services, and used car and trucks. Fed policymakers are expected to have avoided supporting for further policy-tightening.
- Though the decline in price pressures has provided some relief that the progress in the disinflation process has not stalled, Fed policymakers remain leaned towards a restrictive policy stance for a longer period to build confidence that inflation will sustainably return to the desired rate of 2%.
- Last week, New York Fed Bank President John Williams said the monetary policy is restrictive and is in a good place. He doesn’t see any economic indicator suggesting the need to change the stance of monetary policy now. When asked about the inflation outlook, Williams said: “In the very near term, I don't expect to get that greater confidence that we need to see on inflation progress towards a 2% goal," Reuters reported.
- EUR/USD trades in a tight range below the round-level resistance of 1.0900. The shared currency pair is expected to remain quiet as investors shift focus to the Federal Open Market Committee (FOMC) minutes for the May meeting, which will be published on Wednesday. The FOMC minutes will provide a detailed explanation behind interest rates remaining steady and policymakers’ views about the interest rate outlook.
- The communication from Fed policymakers on the interest rate outlook is expected to have remained hawkish as inflationary pressures in the first three months of this year accelerated. However, the Consumer Price Index (CPI) data for April declined as expected due to lower prices of utility gas piped services, and used car and trucks. Fed policymakers are expected to have avoided supporting for further policy-tightening.
- Though the decline in price pressures has provided some relief that the progress in the disinflation process has not stalled, Fed policymakers remain leaned towards a restrictive policy stance for a longer period to build confidence that inflation will sustainably return to the desired rate of 2%.
- Last week, New York Fed Bank President John Williams said the monetary policy is restrictive and is in a good place. He doesn’t see any economic indicator suggesting the need to change the stance of monetary policy now. When asked about the inflation outlook, Williams said: “In the very near term, I don't expect to get that greater confidence that we need to see on inflation progress towards a 2% goal," Reuters reported.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
If you like, reward to support.
Hot
No comment on record. Start new comment.