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FOMC Sinks The US Dollar

US dollar retreats after FOMC meeting The US dollar sell-off resumed with form overnight after the FOMC passed without incident causing US yields to remain almost unchanged. Having reduced short positions into the meeting, investors scrambled to reinstate them afterwards, with the EUR, GBP, AUD, NZD and CAD all rallying. The...

Dovish Fed And Big Earnings Surprises Send US Stocks To New Records

Whoever thought the robust economic figures produced by the US economy over the past few weeks would alter the Fed’s thinking, even slightly, was totally mistaken. The economy is firing on all cylinders with employment, consumer spending, manufacturing, services and the housing sector all exhibiting solid gains. Still, the...

Dovish Fed Confirms Worrying Outlook For USD

Powell's speech yesterday and the FOMC's official post-meeting commentary suppressed speculations of early QE tapering and rate hikes. The Fed chairman focused on fragile economic recovery and reiterated the transitional nature of rising inflation based on a low base effect. The US dollar returned to moderate weakness on these statements....

Asian Equities Edge Higher

Asia in cautious mood, eyes US GDP Asian equities continued to trade with a cautiously bullish bias, with one eye on US GDP this evening, after the FOMC stayed on message but was ever so slightly less dovish. Notably, US index futures are rallying powerfully in Asian trading after blow-out...

On Message Fed Supports Recovery Trade

Fed holds the course Investors moved back into the global recovery trade overnight as the Federal Reserve stayed “on message” and was suitably dovish at its latest FOMC meeting. While the Fed was suitably dovish, there were a few subtle changes to the language of the FOMC statement and in...

Ethereum Forms A Bearish Rising Wedge Pattern After FOMC Decision

US futures rallied after the strong earnings by companies like Apple and Facebook. In a report, Apple said that its profit rose to more than $23.6 billion in the first quarter while its revenue rose to $89.6 billion. It also announced a 7% increase in its dividend and increased...

Fed Refrained from Giving Any Hint about QE Tapering

The Fed voted unanimously to leave the Fed funds rate target at 0-0.25%. It also decided to keep the asset purchases at US$120B per month. As expected, the Fed upgraded the economic assessments but continued to warn of downside risks. Fed Chair Jerome Powell at the press conference noted...

FOMC: Steady As She Goes

As was discussed in out FOMC Preview, not much has changed in the FOMC’s view since the March 17th meeting. Although they acknowledge that inflation has risen, they also note that the inflation is transitory. They noted that the vaccinations and strong policy support economic activity. They also note...

FOMC, Biden In The Rpicenter Of Attention

The USD maintained a stable course yesterday against a number of its counterparts, staying just above the 90.75 support line in the USD Index. Today the market’s attention turns to the FOMC interest rate decision and despite the bank expected widely to remain on hold at the range of...

FOMC and Earnings Dominate Agenda

Will FOMC signal QE taper? We doubt it even as economy in better shape and inflationary pressures on the rise Fed might have to tighten its belt faster eventually Growth stocks may struggle going forward and dollar set for comeback vs. JPY and CHF Facebook and Apple earnings...

Asian Equities Off To A Slow Start

Markets exercising caution ahead of FOMC Wall Street had a sedate day as it moved into wait-and-see mode ahead of the FOMC. Earnings weighed slightly on the Nasdaq, which finished 0.34% lower, but the S&P 500 and Dow Jones finished the day unchanged. Alphabet’s aftermarket rally appears to have shifted...

Pre-FOMC Shuffle Continues

Investors continue to reshuffle exposure ahead of today’s US FOMC meeting, with equities trading sideways, the US dollar rising modestly, and the long end of the US yield curve steepening. The scale of the shuffle, though, hints at caution and not panic. Assuming that the FOMC stays resolutely “on...

Wild, Wobbly Or Whimpering Wednesday?

Market sentiment remains tentative ahead of key events. Powell set to reiterate dovish message. Stocks to climb further as long as Fed stays accommodative. Investors wary of Biden's proposed tax hikes. Oil remains focused on demand-side risks. Asian stocks and US equity futures are mixed as investors brace for...

Too Early For The Outcome-Based Fed To Change Rhetoric

Market movers today Today's main course is the FOMC meeting. Probably an uneventful meeting where the Fed will most likely keep monetary policy intact and not give new policy signals. Previously this month, Chair Powell stated that the US economy is at an inflection point. Since then economic data...

US Dollar Receives A Pre-FOMC Tailwind

US dollar eyes FOMC meeting The US dollar had a mixed session overnight, falling against the risk-sensitive Commonwealth currencies but rising mostly versus the majors, with the dollar index creeping slightly higher to 90.84 overnight. Gains were most notable versus the euro and the Japanese yen. In Asia today, the US...

Asian Equities Mixed Ahead Of FOMC

Asian markets in cautious mood Asia Pacific markets are taking a cautious approach today, notably, as cyclical stocks underperformed in the US overnight and ahead of the FOMC decision tomorrow. On Wall Street, a weaker durable goods headline and expectations of impressive technology earnings this week saw a rotation into...

FOMC Preview – Fed to Deliver Upbeat Message about Economy while Affirming Substantial Progress is Needed to Taper QE

We expect the Fed to turn more upbeat over the economic outlook at this week’s meeting. Yet, the economic improvement is not yet strong enough for any change in the monetary policy measures. As such, the Fed would leave the Fed funds rate target at 0-0.25%. On QE, the...

Dovish Fed Boosts Sentiment Overshadowing AstraZeneca Restrictions

Optimism surrounding the global economic recovery, supported by an accommodative Fed, lifted European stocks in early trade. The minutes from the FOMC March meeting didn't reveal anything new, but a reiteration of the Fed's supportive stance appears to have been a tonic for the markets. Wall Street's main indices closed...

Stocks Conquer New Heights, Dollar Stable After Fed Signals

Wall Street futures cruise to new records, approach key resistance Dollar stages minor comeback after Fed minutes, pound hit by vaccine woes ECB minutes and speech by Fed Chair Powell on the docket today Fed vs markets The minutes of the FOMC meeting contained no new revelations, but there was...

The US Dollar Rises Slightly After FOMC

US yields lift dollar The FOMC minutes “balanced risk” comments were enough to move US yields slightly higher overnight, which also lifted the US dollar. The committee felt that risks were balanced but that the economy remained far from the FOMC’s longer-term goals. Additionally, they expressed comfort that the recent...

Minutes Keep Markets Drifting

Markets show muted response to FOMC minutes The FOMC minutes passed without incident overnight. The committee felt that risks were balanced but that the economy remained far from the FOMC’s longer-term goals. Additionally, they expressed comfort that the recent rise in US bond yields reflected an improving economy and economic...

US: Funding Measures Include Raising The Corporate Tax Rate To 28%

Markets Minutes of the previous FOMC meeting showed that participants think that it would likely be some time until substantial further progress toward the committee's maximum-employment and price-stability goals would be realised and that, consistent with the committee's outcome-based guidance, asset purchases would continue at least at the current pace...

Fed Upbeat on Recovery, while Pledged to Maintain Stimulus Until Substantial Progress is Seen On Economy

The FOMC minutes for the March meeting revealed that members turned more optimistic over the economic outlook. They were more hopeful of continuous improvement in light of the "significant declines in the number of new cases, hospitalizations, and deaths over the intermeeting period as well as a pickup...

Mixed Markets Today

FTSE outperforms on IMF, vaccine news, FOMC minutes in focus European bourses are trading in a mixed fashion, following on from a record reaching session on Tuesday. The prospect of a faster global economic recovery and news that the European Covid vaccine programme is expected to ramp up rapidly over...

Tuning In On FOMC Minutes

Market movers today The key focus is the FOMC minutes, where we tune in on the Fed's take on its monetary policy stance amid highly expansionary fiscal policy and rising yields. In the euro area, the final service PMI for March is released. We expect the Polish central bank...

Norges Bank To Lift The Rate Path

Market movers today It is a busy day today with the highlight being the Norges Bank meeting. We expect Norges Bank to raise the rate path significantly and signal the first rate hike already in September, see more in Nordic section. We also have a number of ECB speakers...

FOMC Review – Fed Revised Economic Projections Significantly Higher, while Pledged to Keep QE Size Unchanged Until Actual Progress is Seen in Economy

The staff significantly upgraded economic projections. While the policy rate will unlikely change before 2024, the median dot plot reveals that more members are now projecting rate hikes in coming two years. As widely anticipated, the Fed left all monetary policy measures unchanged: The size of asset purchases stays...

FOMC Keeps Policy Unchanged, But Rate Hikes Inching Closer

Summary As widely expected, the Federal Open Market Committee (FOMC) refrained from making any major policy changes at its meeting today. But, the Committee upgraded its assessment of the current state of the economy. Specifically, the FOMC now looks for stronger GDP growth, higher inflation and lower unemployment in 2021...

All The Eyes On The FED

The market's attention is turning to the FOMC's interest rate decision (18:00,GMT) and the bank is widely expected to remain on hold, keeping rates unchanged at the range of 0.0-0.25%. It should be noted that Fed Fund Futures imply a probability of 97% for such a scenario to materialise....

The Calm Before The Fed Storm?

Investors are looking forward to the outcome of the FOMC meeting later on Today. Ahead of this, sentiment towards risk remains overall positive thanks the recently passed $1.9 trillion US fiscal stimulus and hopes that the economic recovery will accelerate in the coming months as lockdowns are slowly lifted....