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26 Apr 2016
We await the FOMC - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the major currencies' pairs have been mostly stable in Asia, partially ahead of the upcoming Central Bank's events and partially due to an empty macroeconomic calendar.
Key Quotes:
"London opening brought some USD selling interest, with the American currency weakening against most of its major rivals, and accelerating its decline after the release of March US Durable Goods orders, which rose 0.8% compared to February, less than expected as demand for capital equipment remained weak. The core reading fell by 0.2% in the same period, indicating the economy is still struggling to recover. Also, Consumer confidence fell 1.9 points in April, down to 94.2, while the Markit services PMI rose to 52.1, missing expectations of 52.3.
The EUR/USD pair advanced up to 1.1339 before turning south to trim most of its daily gains, and closed the day in the 1.1280 region, as investors are not willing to risk much ahead of the FOMC decision.
The US Central Bank is expected to remain maintain the status-quo, with focus then on the wording of the statement. Should the FED announce that it sees the risks to the outlook for both economic activity and the labour market as “balanced” or "nearly balanced," it will be understood as a sign that the FED is one step closer to raise rates and therefore give the greenback some support."
Key Quotes:
"London opening brought some USD selling interest, with the American currency weakening against most of its major rivals, and accelerating its decline after the release of March US Durable Goods orders, which rose 0.8% compared to February, less than expected as demand for capital equipment remained weak. The core reading fell by 0.2% in the same period, indicating the economy is still struggling to recover. Also, Consumer confidence fell 1.9 points in April, down to 94.2, while the Markit services PMI rose to 52.1, missing expectations of 52.3.
The EUR/USD pair advanced up to 1.1339 before turning south to trim most of its daily gains, and closed the day in the 1.1280 region, as investors are not willing to risk much ahead of the FOMC decision.
The US Central Bank is expected to remain maintain the status-quo, with focus then on the wording of the statement. Should the FED announce that it sees the risks to the outlook for both economic activity and the labour market as “balanced” or "nearly balanced," it will be understood as a sign that the FED is one step closer to raise rates and therefore give the greenback some support."