Entering into US session, Dollar remains mixed as traders await FOMC statement. The markets were generally quiet today with many centers on holiday. Much stronger than expected ADP job report couldn’t provide any support to the greenback. Instead, the key for Dollar is whether Fed Chair Jerome Powell would dismiss talks of rate cut as premature. Or he’ll sound concerned with sluggish inflation and indicate openness on lowering interest rates.
At the time of writing, Swiss Franc is the strongest one for today, followed by Sterling. Pound shrugs off decline in PMI manufacturing in April. It’s extending this week’s rebound, in particular against Dollar, Euro and Yen. Euro is the third strongest. Meanwhile, New Zealand Dollar is the weakest one after poor job data, followed by Aussie and then Canadian.
Some suggested readings on FOMC:
- Traders Eye Fed’s Decision
- FOMC Preview: IOER Cut Possible, But Neutral Outlook Likely For Another Month
- Fed Meets as Rate-Cut Bets Mount
- FOMC Preview -Fed to Reiterate Patience Rhetoric Despite Strong First Quarter Growth, Focus on Soft Inflation
In other markets:
- DOW open slightly higher, up around 50 pts at initial trading.
- FTSE is down -0.07%.
- German, France, Singapore, Hong Kong, Japan, China markets were all closed
