The US Federal Reserve meeting will be a “story of the day”. Overview for 02.05.2018
In the second half of today’s trading session, EURUSD may get more volatile, although no one is expecting any surprises from the FOMC.
The main currency pair finished the previous month close to its four months lows. As a rule, the FOMC meetings take place at the end of the month, but this time it was a bit postponed.
In order to continue strengthening, the USD needs the Federal Reserve Chairman Jerome Powell to be more “hawkish”. Also, the regulator’s estimations of the country’s economy should be very positive. In this case, investors’ attitude will be in favor of the American currency.
The latest statistics that were published turned out to be pretty positive and showed some stable economic growth. The labor market readings were impressive: the Unemployment Claims report published last week showed the lowest numbers over the last several years. The labor market is looking more stable than many other indicators and, thus, providing the economy with significant support.
Most likely, the FOMC benchmark rate will remain unchanged at 1.75%. However, it may be revised in May or June.
RoboMarkets Analytical Department
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