Fed Leaves Rates Unchanged, Says Inflation Close to Target

Federal Reserve officials left interest rates unchanged, acknowledging inflation is close to target without indicating any intention to veer from their gradual tightening of monetary policy. “Inflation on a 12-month basis is expected to run near the committee’s symmetric 2 percent objective over the medium term,” the policy-setting Federal Open Market Committee said in a statementWednesday in Washington. “The committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.” Officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the “symmetric” nature of their target. Read More @ https://www.bloombergquint.com/global-economics/2018/05/02/fed-leaves-rates-unchanged-says-inflation-close-to-target

Fed Holds Rates Steady and Stays on Track for June Increase

The Federal Reserve held interest rates steady at the conclusion of its two-day policy meeting on Wednesday and acknowledged rising inflation, but it gave little indication that officials are worried about a sudden, rapid escalation in prices or an abrupt slowdown in economic growth that could alter its gradual pace of rate increases. The Federal Open Market Committee’s unanimous decision not to raise rates so quickly after a March increase had been widely expected. The official statement from the committee gave no indication that Fed officials plan to raise rates faster than previously telegraphed. Read More @ https://www.nytimes.com/2018/05/02/us/politics/federal-reserve-meeting-rates.html?partner=rss&emc=rss

WHAT IS THE USD INDEX SAYING?

USD has punched through the $92.50 and now $94 target is in place. FED is pretty happy with the inflation and also the robust growth of the US economy. Market rushes to Buy the USD for now. USD also broken off from the Range since FEB. The question now is will the USD continue to rise and stay Bullish.

We look for an opportunity to SELL rather then BUY. EUR is our focus and we maintain BUY for EUR Pairs but we are watching the Technical moves first before jumping into a trade.

TODAYS NEWS THAT MGHT AFFECT YOUR TECHNICAL TRADES.

  1. 2.00am – FED maintain the rate at 1.75% but happy with inflation – books are open for rate hike next month.
  2. 9.30am – Australia will release their trade balance data – expected to be good – a Pullback is expected.
  3. 3.00pm – Spain will release Unemployment rate and is expected to be good. We are watching for EUR technical move before buying EURO.
  4. 4.30pm – EURO – CPI FOCUS – expected to be no change – expect good volatility in favor of the EURO.
  5. 8.30pm – Canada Trade Balance – expected to be good. We still maintain buy for CAD.
  6. 8.30pm  – US will release Unit Labor Cost, Trade Balance and Final Services PMI – all are expected to be good. Gold & Oil to watch together with JPY pairs – expected to be weaken.
  7. 10.00pm – US will release ISM mfg PMI and Factory orders both is expected to be good.

Looks like the USD will end this week strong against most pairs; tomorrow is NFP (Non-Farm Payroll) which is widely expected to be good. Be cautious if you are shorting the USD and always maintain for 10/2 rule in trading – never over trade or go against money management.

High Risk Investment Warning:

Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.

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