Today markets focus on the publication of the Fed protocol
April 10, 2019 11:26 amVideo
Latest News
- Trading plan for GBP/USD on May 6. Simple tips for beginners May 6, 2024
- Trading plan for EUR/USD on May 6. Simple tips for beginners May 6, 2024
- Technical Analysis of Intraday Price Movement of CAD/JPY Cross Currency Pairs , Monday May 06 2024.ei 2024. May 6, 2024
- Technical Analysis of Intraday Price Movement of USD/IDR Exotic Currency Pairs , Monday May 06, 2024. May 6, 2024
- Forecast for EUR/USD on May 6, 2024 May 6, 2024
- Forecast for GBP/USD on May 6, 2024 May 6, 2024
- Forecast for AUD/USD on May 6, 2024 May 6, 2024
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
On Tuesday, the US dollar received some support against major currencies and as a traditional safe-haven currency, the yen rose. The catalyst of such dynamics was the revival of fears that the growth of the world economy will continue to slow down.
The International Monetary Fund published its forecast on Tuesday on the dynamics of world GDP, which turned out to be pessimistic and predicts a slowdown in the economic growth rate to 3.3%. Forecasts for Europe and the United States are downward while expectations for growth in the Chinese economy are rising.
On this wave, the stock markets in Europe and the USA fell. Naturally, in this situation, government bonds of economically developed countries, primarily America, began to be in demand. The decline in the benchmark yield of 10-year Treasuries, which began on Tuesday, continued into the Asia-Pacific trading session and the yield was losing 0.36% to 2.490% at the time of this writing.
The fall of the major stock indices took place against the background of profit taking and the appreciation of the dollar, which, however, we believe to be temporary. The reason for this may be the probable hint by the Fed that it may proceed to lower interest rates if the growth of the American economy continues to slow down. This signal can be given in the minutes of the March meeting of the regulator, which will be published today. Investors are waiting for him, as they believe that the decline in the growth of the American economy against the backdrop of external challenges associated with trade wars, as well as Donald Trump’s persistent calls for the Fed to begin the process of lowering interest rates, is too significant.
Considering this, it can be assumed that if this probability really appears in the protocol. This will be a new impetus to the growth in demand for risky assets, not only in the US but throughout the world and especially in emerging markets (EM). In this case, the US dollar will be under pressure against major currencies, as well as some currencies of countries with developing economies, including Russia.
At the same time, if such a signal does not follow, the Fed will continue to signal a desire to observe the development of events before taking any measures and this is unlikely to have a strong impact on markets that will continue to stagnate.
Forecast of the day:
The AUD/USD pair is trading above the level of renewed demand for risky assets. If the pair holds above the level of 0.7145, it can continue to grow to 0.7165 with the prospect of an increase to 0.7200.
The USD/CAD pair may continue to fall if the minutes of the March meeting of the Fed published today show the bank’s tendency to lower interest rates. In this case, the pair will overcome the mark of 1.3315 and rush to 1.3285. Then, it will possibly move to 1.3250.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: