Fed expects boosts US dollar to recover lost ground
EUR/USD ⬇️
GBP/USD ⬇️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬇️
WTI ⬆️
The 2022 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) have world leaders in economy sharing their remarks to global economic trends and their responses. While both Federal Reserve (the Fed) Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde agreed that current inflation in a global scale is primarily caused by supply shock, Powell has decided to be proactive - putting a half-point interest rate increase "on the table" during May and work on the demand side of inflation. On the other hand, Lagarde prefers to be “gradual and flexible” when it comes to combating inflation, and only in June - when more data support arrives and the next governing council commences will the ECB actually put rate hike “on the table”.
The consistent hawkish stance has allowed the US dollar to recover against major currencies, EUR/USD closed at 1.0836 after retreating from a high of 1.0936. As more PMI-related data for EU and Germany will be available later today (22 April), forecasts have pointed to a slowed growth on the European continent. Meanwhile in the UK, the Bank of England’s (BoE) Governor Andrew Bailey will give two speeches, one of them directly addressing inflation dynamics. As later today, the Purchasing Managers Index (PMI) and retail related-data in the UK are expected to indicate a slowed growth and decreasing consumption volume, the BoE Governor’s response will greatly influence the British Pound’s exchange rates. For now, GBP/USD has dropped to 1.3028.
A strong US dollar also pushed back the gains made by the Australian and Canadian currencies, without any major Australian economic data being released this week, AUD/USD went down with the current to 0.7371. The USD/CAD pair rose to 1.2578 as oil price is relatively stable, Statistics Canada will release its Retail Sales data today, where Core Retail Sales is predicted to be sluggish, with a meager forecast of a 0.1% increase.
Gold and oil prices went in different directions, due to a climbing United States 10-Year Bond Yield that closed at 2.917, gold price slipped to 1,948.2 after regaining momentum from a low of 1,938. As China’s major cities remain under the shadow of the health crisis, a cut in global oil demand and US rate hike rumors resulted in minor gains in crude oil price, which retreated from a high of 105.29 and closed at 103.79 .
Find more on Mitrade
GBP/USD ⬇️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬇️
WTI ⬆️
The 2022 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) have world leaders in economy sharing their remarks to global economic trends and their responses. While both Federal Reserve (the Fed) Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde agreed that current inflation in a global scale is primarily caused by supply shock, Powell has decided to be proactive - putting a half-point interest rate increase "on the table" during May and work on the demand side of inflation. On the other hand, Lagarde prefers to be “gradual and flexible” when it comes to combating inflation, and only in June - when more data support arrives and the next governing council commences will the ECB actually put rate hike “on the table”.
The consistent hawkish stance has allowed the US dollar to recover against major currencies, EUR/USD closed at 1.0836 after retreating from a high of 1.0936. As more PMI-related data for EU and Germany will be available later today (22 April), forecasts have pointed to a slowed growth on the European continent. Meanwhile in the UK, the Bank of England’s (BoE) Governor Andrew Bailey will give two speeches, one of them directly addressing inflation dynamics. As later today, the Purchasing Managers Index (PMI) and retail related-data in the UK are expected to indicate a slowed growth and decreasing consumption volume, the BoE Governor’s response will greatly influence the British Pound’s exchange rates. For now, GBP/USD has dropped to 1.3028.
A strong US dollar also pushed back the gains made by the Australian and Canadian currencies, without any major Australian economic data being released this week, AUD/USD went down with the current to 0.7371. The USD/CAD pair rose to 1.2578 as oil price is relatively stable, Statistics Canada will release its Retail Sales data today, where Core Retail Sales is predicted to be sluggish, with a meager forecast of a 0.1% increase.
Gold and oil prices went in different directions, due to a climbing United States 10-Year Bond Yield that closed at 2.917, gold price slipped to 1,948.2 after regaining momentum from a low of 1,938. As China’s major cities remain under the shadow of the health crisis, a cut in global oil demand and US rate hike rumors resulted in minor gains in crude oil price, which retreated from a high of 105.29 and closed at 103.79 .
Find more on Mitrade