Dollar's Rebound Pauses ahead of FOMC, Oil Prices Decline
Action Insight Mid-Day Report 5-1-24 |
Dollar's Rebound Pauses ahead of FOMC, Oil Prices Decline |
Dollar's rally slowed slightly in early US session despite robust ADP job data, as traders adopt a cautious stance ahead of the highly anticipated FOMC statement and Chair Jerome Powell's press conference. With a hawkish shift expected from Fed, the extent of Powell's hawkish tone remains the primary focus. Market participants are speculating on whether Powell will merely dismiss a rate cut in June, suggest fewer rate cuts throughout the year, or even hint at the possibility of a rate hike. In the broader currency market, Yen is currently the strongest performer for the week, followed by Dollar and Sterling. Aussie lags as the weakest, with Kiwi and Loonie also underperforming. Euro and Swiss Franc hold their ground in the middle of the pack. The upcoming reactions to Fed's decisions are poised to be pivotal, influencing not just currencies but also the stock and bond markets, as well as their interactions... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2465; (P) 1.2517; (R1) 1.2544; More... Intraday bias in GBP/USD remains neutral for the moment and outlook is unchanged. On the upside, above 1.2568 will resume the rebound from 1.2298 to 55 D EMA (now at 1.2578). Sustained break there will argue that fall from 1.2892 has completed already, and bring further rise to this resistance. Nevertheless, on the downside, break of 1.2448 minor support will indicate that rebound from 1.2298 has completed, and turn bias back to the downside for this low. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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22:45 | NZD | Employment Change Q1 | -0.20% | 0.30% | 0.40% | 22:45 | NZD | Unemployment Rate Q1 | 4.30% | 4.30% | 4.00% | 22:45 | NZD | Labour Cost Index Q/Q Q1 | 0.80% | 0.80% | 1.00% | 00:30 | JPY | Manufacturing PMI Apr F | 49.6 | 49.9 | 49.9 | 08:30 | GBP | Manufacturing PMI Apr F | 49.1 | 48.7 | 48.7 | 12:15 | USD | ADP Employment Change Apr | 192K | 180K | 184K | 208K | 13:30 | CAD | Manufacturing PMI Apr | 50.2 | 49.8 | 13:45 | USD | Manufacturing PMI Apr F | 49.9 | 49.9 | 14:00 | USD | ISM Manufacturing PMI Apr | 50.1 | 50.3 | 14:00 | USD | ISM Manufacturing Prices Paid Apr | 55.6 | 55.8 | 14:00 | USD | ISM Manufacturing Employment Index Apr | 47.4 | 14:00 | USD | Construction Spending M/M Mar | 0.30% | -0.30% | 14:30 | USD | Crude Oil Inventories | -2.3M | -6.4M | 18:00 | USD | Fed Interest Rate Decision | 5.50% | 5.50% | 18:30 | USD | FOMC Press Conference |
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