Today's forex news: Federal Open Market Committee minutes
Today's forex news: Federal Open Market Committee minutes extends US dollar rally
EUR/USD ⬇️
GBP/USD ➡️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬇️
WTI ⬇️
As the Federal Open Market Committee (FOMC) has released its March meeting minutes, it confirmed market’s expectation for further interest rate hikes and plans to reduce its balance sheet. The US dollar railled and many analysts expect strong dollar trade would last for at least another three months. The 10-year yield and the 2-year yield surged to multi-year highs since early 2019 at 2.609% and 2.502% respectively.
EUR/USD dropped to 1.0893, and GBP/USD had a brief pop to 1.3107, and closed at 1.3068. With the UK domestic labor market recovering, the Bank of England may think twice about hiking interest rates beyond May.
Although a strong US dollar has reduced gold prices at 1,923.1, RJO Futures senior market strategist expects a bounceback in the next two quarters, as they anticipated the extended inflation would outpace the US Federal Reserve’s pace to raise rates.
Same goes to oil prices, while the US and International Energy Agency (IEA) members have deployed their 180 million barrels of strategic oil reserve, dragging its prices to $96.23 a barrel, but the market foresees that decrease won’t last given the glum production outlook for most Organization of the Petroleum Exporting Countries (OPEC) nations.
Low commodity prices have weakened the Australian and Canadian currencies against the US dollar, AUD/USD closed at 0.7513 and USD/CAD at 1.2542. Even though both countries enjoyed news of recovering economies and rumors of rate hikes, the news was offset by a strong dollar.
According to the FOMC minutes, no concrete decisions were made to reduce its balance sheet, the market expects a reduction in treasuries and mortgage-backed securities by 95 billion dollars per month, which is likely to begin in May, as hinted by Governor Lael Brainard yesterday (April 6).
Inflation is likely to loom over the global economy in 2022, but with promising employment figures in western countries, a massive recession can be averted if the COVID pandemic continues to slow down and global supply chain returns to normal.
📱 Get instant market news delivered to you in real time on Mitrade
EUR/USD ⬇️
GBP/USD ➡️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬇️
WTI ⬇️
As the Federal Open Market Committee (FOMC) has released its March meeting minutes, it confirmed market’s expectation for further interest rate hikes and plans to reduce its balance sheet. The US dollar railled and many analysts expect strong dollar trade would last for at least another three months. The 10-year yield and the 2-year yield surged to multi-year highs since early 2019 at 2.609% and 2.502% respectively.
EUR/USD dropped to 1.0893, and GBP/USD had a brief pop to 1.3107, and closed at 1.3068. With the UK domestic labor market recovering, the Bank of England may think twice about hiking interest rates beyond May.
Although a strong US dollar has reduced gold prices at 1,923.1, RJO Futures senior market strategist expects a bounceback in the next two quarters, as they anticipated the extended inflation would outpace the US Federal Reserve’s pace to raise rates.
Same goes to oil prices, while the US and International Energy Agency (IEA) members have deployed their 180 million barrels of strategic oil reserve, dragging its prices to $96.23 a barrel, but the market foresees that decrease won’t last given the glum production outlook for most Organization of the Petroleum Exporting Countries (OPEC) nations.
Low commodity prices have weakened the Australian and Canadian currencies against the US dollar, AUD/USD closed at 0.7513 and USD/CAD at 1.2542. Even though both countries enjoyed news of recovering economies and rumors of rate hikes, the news was offset by a strong dollar.
According to the FOMC minutes, no concrete decisions were made to reduce its balance sheet, the market expects a reduction in treasuries and mortgage-backed securities by 95 billion dollars per month, which is likely to begin in May, as hinted by Governor Lael Brainard yesterday (April 6).
Inflation is likely to loom over the global economy in 2022, but with promising employment figures in western countries, a massive recession can be averted if the COVID pandemic continues to slow down and global supply chain returns to normal.
📱 Get instant market news delivered to you in real time on Mitrade