On Wednesday, the Federal Reserve holds rates and expressed confidence in the U.S. economy, leaving the door open for June hike. In this regard, the FOMC said, labor market improved further despite the slowing economy and they are closely watching inflation. According to the statement, the FOMC is closely monitoring the global economic and financial development. The USD index declined yesterday to 94.40.
EUR traded heavily after the announcement of the Monetary Policy Statement, to trade at $1.1320 and could re-test levels of $1.14.
GBP pared its gains vs. USD and traded below $1.45. From a technical point of view; GBP could back to gains once again, thanks to soft USD, but UK poll results make the attitude unclear.
JPY declined vs. USD to 111.40 levels as markets are awaiting BOJ meeting’s results.
Gold prices settled at $1,245 as Fed. holds rates, leaving the door open for June hike, which means that gold could see a state of stability.
Oil prices continued to rise, however, bullish inventory data. An official data revealed that the U.S crude inventories jumped last week, slightly higher than expected. WTI has broken $45 and traded at $45.30, backed by soft USD.
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.